When markets wobble and headlines get gloomy, some investors turn to a familiar comfort, that is, dividend-paying PSU stocks. After all, who does not like getting a little extra while holding on to shares?
Public Sector Undertakings (PSUs), backed by the government, have long been seen as the steady, no-drama players of the stock market. And while their share prices might not always shoot for the stars, many of them quietly reward shareholders with dividends year after year.
So, which PSUs are leading the pack when it comes to dividend yield? Here’s a closer look at the top five PSU stocks that have caught attention for their dividend yields.
Coal India: High yield, mixed performance
Coal India tops the dividend chart among PSUs with a yield of nearly 7%. The company paid out Rs 26.35 per share over the past year. However, recent stock performance has been under pressure.
On Wednesday, the stock closed at Rs 375.25, down by 2%, and over the past five days, it’s lost around 6%. While the Coal India share price has gained 23% over the last six months, it has declined 18% on a one-year basis. Its 52-week high stands at Rs 543.55, while the low is Rs 349.25. Currently, it trades below its yearly peak, and on a YTD basis, it’s down 3%.
ONGC: Steady dividend, slippery stock
Oil and Natural Gas Corporation (ONGC) boasts a dividend yield of 6%, with a dividend payout of Rs 13.5 per share in the last 12 months. The stock closed at Rs 223, down 1.6% on Wednesday. In the last week alone, ONGC share price has dropped 10%, and in the past six months, it’s down 23%.
Even on a one-year scale, the stock is 18% lower, and it has fallen 6% YTD.
BPCL: Sliding, but still attractive?
Bharat Petroleum Corporation Limited (BPCL) has a dividend yield of 6%, with Rs 15.5 distributed per share in the past year. Despite this, the share price of BPCL has been on a downtrend.
Over the last five days, it dropped 0.40%, down 12.07% over the past month, and fell 14.16% in the last six months. Over the past year, it’s dipped 4.77%, and is down 2.49% YTD. Its 52-week high is Rs 376, while the low is Rs 234.01.
Indian Oil Corporation: Strong payout, weak sentiment
IOC stands out with a 5% dividend yield, supported by a Rs 7 per share dividend payout. The IOC share price, however, has not followed through on performance. It slipped 0.79% over the past five days and despite gaining nearly 8% in the past month, it has dropped 20.13% in six months and 24.13% over the year.
Its 52-week high is Rs 185.97, while the low is Rs 110.72.
REC: Strong yield, heavy correction
REC Limited, a financial PSU, has a dividend yield of 5%, with a Rs 20.4 payout per share. The stock, however, has seen some rough weather lately. It fell 1.58% on Wednesday, and is down nearly 9% in the last five days. Over the past six months, share price of REC has corrected a steep 28.42%, and is down 13.12% over one year. On a YTD basis, it’s declined 22.94%.
Its 52-week high was Rs 654, and the stock now trades close to its low at Rs 357.35, with a current market price of around Rs 384.