Indian Oil, SAIL, REC, ONGC, NALCO among top 10 PSU stocks paying high dividends

The dividend yield is among the key factors to consider when investing in dividend-paying stocks. Reliance Broking explains that dividend yields are an indicator of the return that the investors are earning on their shares. In general terms, the dividend yield of a share is the ratio of dividends paid per equity share to shareholders on the current price of the equity share.

In its report, the brokerage said, “We have filtered the list of top dividend-paying companies based on their fundamental strength and selected 10 stocks. Investors, interested in dividend income, can consider these stocks for investments.”

The brokerage has listed the top 10 PSU stocks that are paying high dividends. These are:

As per the brokerage, Indian Oil Corp tops the list in PSU stocks with a dividend yield of 10.9%, followed by Steel Authority of India (SAIL) which has a yield of 10.6%. REC is also in the top three list with a dividend yield of 10.2%.

NMDC and PTC India are among the top five dividend-paying stocks in PSUs, with a yield of 9.5% and 9.2% respectively.

NALCO holds a dividend yield of 8.3%, and Coal India with a yield of 8%. Other stocks are — Power Finance Corp with a 7.9% yield, ONGC with a 7% yield, and Power Grid with a 6.5% yield.

In the brokerage’s lists, the metal and mining sector tops with four stocks, while 2 stocks each were in the oil & gas, finance, and power sectors.

Top 10 PSU stocks paying high dividends.

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Top 10 PSU stocks paying high dividends. (Religare Broking)

Stocks with high dividend yield compared to benchmarks like Sensex and Nifty 50 are referred to as high dividend yield stocks. The high dividend yield also gives a fair understanding of the share’s price value. Simply put, high dividend yield stock hints that the stock is typically under-priced by the market and has more potential ahead.

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