Mumbai, Aug 27
Public sector companies have once again proved to be attractive for investors seeking steady income, as many of them announced hefty dividend payouts over the past 12 months.
For long-term investors, these stocks not only offer capital appreciation but also provide regular income through dividends.
Dividends are the portion of a company’s profit distributed to its shareholders, typically paid quarterly, semi-annually, or annually.
Among state-owned firms, Coal India stood out with the highest dividend payout of Rs 32 per share, delivering a dividend yield of 8.6 per cent.
Dividend yield refers to the annual dividend income expressed as a percentage of the stock’s current market price -- an important metric for income-focused investors.
Power Finance Corporation (PFC) rewarded shareholders with Rs 19.5 per share -- reflecting a yield of 5 per cent, while REC Limited paid Rs 19.1 per share, also translating into a 5 per cent yield.
Energy giant ONGC distributed Rs 13.5 per share during the year, offering investors a yield of 6 per cent.