Even as the government demands millions of dollars in dividends from state companies to make up for an expected tax revenue shortfall this fiscal year, there have been a few PSU stocks which have consistently declared a very high dividend. According to a Reuters report, the government has demanded a dividend payout of up to 100% of earnings in 12 reluctant state-run firms. The demand had been made after a finance ministry assessment of the financial health of 14 state companies, including top miner NMDC Ltd and trading firm MMTC Ltd, reported Reuters. “The ministry asked 12 of the companies to payout between 30 percent and as much as 100 percent of their 2016/17 or 2017/18 net profit in dividends, share buybacks or bonus shares. The other two companies were exempted,” says the report. We take a look at top dividend paying PSU stocks, which will help the investors to reap regular income.
The government-owned oil marketing company has a good track record of announcing dividends, with the company declaring annual dividends consistently for the last five years. Last year, Hindustan Petroleum Corporation had declared an equity dividend of 300% amounting to Rs 30 per share. The shares were trading at Rs 411.1 on NSE, down by more than 2% since the previous close yesterday. Notably, the shares have returned more than 42% since January, as opposed to BSE Sensex returns of 24% in the same period.
The Indian state-controlled coal mining company headquartered in Kolkata, has also declared dividends consistently for the last five years, implying a good track record. For the year ending March 2017, Coal India had declared an equity dividend of 199.00% amounting to Rs 19.9 per share. Coal India shares were trading at Rs 274.5 on NSE this afternoon. The shares have shed more than 8% in the year so far, as compared to BSE Sensex returns of 24%.
The state-run company is engaged in mining of lignite and generation of power through lignite based thermal power plants. For the year ending March 2017, NLC India had declared an equity dividend of 73.40% amounting to Rs 7.34 per share. The shares are currently trading at Rs 99.9 on NSE. The company has a good dividend track record and has consistently declared dividends for the last 5 year. Notably, apart from dividends, the company has also beaten the BSE Power Index with returns of more than 30% since January. The BSE Power index has returned 14% in the same period.
The Indian Hydropower generation company is another scrip which provides consistent dividends to his holders. The company had declared annual dividends in the last five years consecutively. NHPC Ltd shares were trading at Rs 27,.07 this afternoon down by more than 0.55%. Last year, the company had declared an equity dividend of 18.00% amounting to Rs 1.8 per share. The shares have returned more than 2% since January.
Bharat Petroleum Corporation Limited is an Indian state-controlled Maharatna oil and gas company headquartered in Mumbai. Notably, For the year ending March 2016, Bharat Petroleum Corporation had declared an equity dividend of 310.00% amounting to Rs 31 per share. It did not declare any dividend for year ending March-17. Notably, the shares have returned more than 18% since January.
Another state run oil marketing company makes it to the list of top dividend paying scrips! For the year ending March 2017, Indian Oil Corporation has declared an equity dividend of 190.00% amounting to Rs 19 per share.The company has a good dividend track report and has consistently declared dividends for the last 5 years. The shares were trading at Rs 386.55 down by more than 2.6% since the previous close.