Vedanta, REC to IOC: These 5 dividend stocks beat PPF, SSY interest rate given in 2023
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." Also Read: What BSE, NSE special live trading session mean for investors? Zerodha explains StoxBox expert went on to add that most of the good dividend yield stocks belong to PSUs,
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