Power Finance Corp (PFC) dividend declared in FY23 beats PPF, bank FD returns
Dividend paying stock: Investing in dividend stocks may turn out a better bet than risk-free small saving schemes like Public Provident Fund (PPF), Employees’ Provident Fund (EPF) and bank fixed deposits (FDs). Some times a dividend paying stock delivers double bonanza if their dividend yield beats traditional risk-free investment options and at the same time they login handsome rise during the investment horizon.
Power Finance Corporation (PFC) share is one such dividend stock that has declared ₹10 per share dividend in last one year. At the same time, PFC share price has ascended around 30 per cent in this time as well. As PFC shares were around ₹120 apiece levels around a year ago, PFC dividend yield and PFC shares’ return together delivered double bonanza for its long term positional shareholders.
PFC dividend history in FY23
In last one year, dividend declared by PFC shares is ₹10 per share. It declared dividend in last one year on four occasions. It traded ex-dividend stock on 9th June 2022 for payment of ₹1.25 per share interim dividend to its shareholders. Similarly, it traded ex-dividend stock on 1st September 2022 for payment of ₹2.25 interim dividend per equity share. Likewise, PFC shares traded ex-dividend stock on 24th November 2022 for ₹3 per share interim dividend to its shareholders. PFC stocks traded ex-dividend again on 24th February 2023 for ₹3.50 per share interim dividend payment.
PFC dividend yield in FY23
At the beginning of FY23, PFC share price was at around ₹120 apiece and PFC share price today is ₹156.50 per share levels. So, the dividend stock has risen to the tune of 30 per cent in last one year. PFC dividend yield in FY23 stands at 8.35 per cent [( ₹10 / 120) x 100]. Adding dividend yield and PFC share price appreciation in last one year, net return given by the dividend paying stock is around 38 per cent (30 + 8).
PFC dividend yield beats PPF, EPF, bank FD returns
In last one year, PPF interest rate has remained around 7.10 per cent whereas EPF interest rate has remained at 8.10 per cent. However, bank fixed deposit (FD) return has ascended from around 5.50 per cent to around 7 per cent in last one year. So, comparing PFC dividend yield in FY23 with these traditional investment options, PFC has managed to beat PPF, EPF and bank FD returns.
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