Vedanta, REC to IOC: These 5 dividend stocks beat PPF, SSY return in 2023 (2024)

Dividend stocks 2023: A long term investor not just gain from stock price rise but from various other rewards that a listed company declare from its capital reserves. Dividend payout is one such benefit that a long term investor enjoys. So, a stock market investor not just remain vigilant about the fundamentals of the company but its dividend payout ratio as well. In the year 2023, there are some dividend stocks that have an annual dividend yiled, which is much higher than some of the small saving schemes' interest rate.

These dividend stocks have a dividend yield in 2023, which is much higher than Public Providend Fund or PPF interest rate (7.10%), Sukanya Samriddhi Yojana or SSY interest rate (8%), etc. paid by the Government of India (GoI). However, it should be noted that SSY interest rate announced for January to March 2024 quarter is 8.20 per cent.

Speaking on dividend stocks 2023, Manish Chowdhury, Head of Research at StoxBox said, "There were many high dividend paying stocks in 2023, with frontline names being Vedanta, Hindustan Zinc, Coal India and IOC which offered dividend yields anywhere between 6-24% based on last 12 month declared dividends. A relatively stable cash flow generation capability and matured business models are typical characteristics of these high dividend paying stocks. Investors benefit from the high dividend yield stocks as these shares exhibit lower volatility and have lower cost of acquisition which becomes ideal for retail investor who look out for steady income along with scope for capital appreciation."

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StoxBox expert went on to add that most of the good dividend yield stocks belong to PSUs, which also offer additional comfort to retail investors.

Dividend stocks 2023

Here we list out five dividend stocks that have a dividend payout ratio, which beats PPF and SSY interest rate in 2023:

1] Vedanta: Dividend declared by this company is ₹62.50 per share. In the year 2023, Vedanta declared dividends on four occassions. In 2023, it traded ex-dividend for the first time on 3rd February 2023 for payment of ₹12.50 per share interim dividend. Later on, it traded ex-dividend on 6th April 2023, 30th May 2023 and 27th December 2023 for payment of interim dividends of ₹20.50, ₹18.50 and ₹11 per share respectively.

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Vedanta dividend yield

At the beginning of 2023, Vedanta shares were available at around ₹316. So, Vedanta's dividend yield in 2023 is around 19.80 per cent. This dividend yield of Vedanta is more than double of the PPF interest rate of 7.10 per cent and Sukanya Samriddhi Yojana interest rate of 8 per cent paid in 2023.

2] REC: Dividend declared by this company is ₹14.10 per share. In the year 2023, REC declared dividends on four occassions. In 2023, it traded ex-dividend for the first time on 9th February 2023 for payment of ₹3.25 per share interim dividend. Later on, it traded ex-dividend on 14th July 2023, 14th August 2023 and 11th November 2023 for payment of interim dividends of ₹4.35, ₹3.00 and ₹3.50 per share respectively.

REC dividend yield

At the beginning of 2023, REC share price were available at around ₹120.50 apiece. So, REC's dividend yield in 2023 is around 11.70 per cent. This dividend yield of REC is much higher than the PPF interest rate of 7.10 per cent and SSY interest rate of 8 per cent paid in 2023.

Interestingly, REC share price has risen to the tune of 250 per cent in 2023 as well.

3] Indian Oil Corporation or IOC: The Indian PSU company has traded ex-dividend on two occasions in 2023. Total dividend declared by IOC in 2023 is ₹8 per share. It traded ex-dividend for the first time on 28th July 2023 for payment of ₹3 per share dividend whereas it traded ex-dividend for the last time in 2023 on 10th November 2023 for payment of ₹5 per share dividend.

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IOC dividend yield in 2023

IOC share price was quoting ₹78 at the beginning of 2023. This means IOC dividend yield in 2023 is 10.25 per cent, which is much higher than the interest paid by PPF, SSY and other government-backed small saving schemes.

IOC share price has ascended over 65 per cent in the year 2023 as well.

4] Coal India Ltd: Total dividend declared by this Indian PSU is ₹24.50 per share and the stock traded ex-dividend thrice in 2023. It traded ex-dividend for the first time in 2023 on 8th February for payment of ₹5.25 per share dividend. Later on, it traded ex-dividend again on 18th August and 21st November 2023 for payment of ₹4.00 per share and ₹15.25 per share dividends respectively.

Coal India dividend yield in 2023

Coal India shares ascended from ₹224.75 to ₹376.20 apiece levels in 2023, delivering over 65 per cent return to its shareholders. As it was available at ₹224.75 apiece at the beginning of the year 2023, Coal India shares' dividend yiled in 2023 stands at 10.90 per cent, which is higher than PPF interst rate and SSY interest rate given in 2023.

5] Hindustan Zinc: This dividend stock of the Indian stock market has traded ex-dividend on four occasions in 2023. Total dividend declared by Hindustan Zinc Ltd in 2023 is ₹52 ( ₹13 + ₹26 + ₹7 + ₹6). Hindustan Zinc shares were available at ₹325 levels in the beginning of 2023. This means, Hindustan Zinc shares' dividend yield in 2023 is 16 per cent, which is more than double of PPF interest rate given in this year.

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ABOUT THE AUTHOR

Asit Manohar

Chief Content Producer at Live Mint Digital Team