Here are the top 5 PSU stocks with dividend yields above 5%
Passive income from dividends has become the lifeblood of many investors, and is one of the many reasons why they keep faith in the stock market. Even the father of value investing Benjamin Graham agreed. In his words, “The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies." The assumption is that companies paying out a slice of their earnings to shareholders typically have a record of strong profits.
Dividend investors thus give the company an incentive to maintain their dividend payments into the future. With that in mind, today we’ll look at the top five PSU stocks with dividend yields of over 5%. The dividend yield is the return on a stock investment that’s solely from dividends.
It is calculated by dividing the dividend per share by the current price. The higher the dividend yield, the better. With that explainer out of the way, let’s get started.
Oh, and by the way, these stocks are filtered using the Equitymaster's powerful Indian stock screener. Despite the strong rally in PSU stocks over the past few months, PFC commands a dividend yield of over 3%. Over the past year, its stock price has increased by 271%.
The company will pay an interim dividend of ₹3.5 on Thursday. Earlier, it paid an interim dividend of ₹4.5 for the current financial year. And in September 2023, PFC had issued bonus shares in the ratio of 1:4.
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