Amid the ongoing uncertainty in the domestic equity market, high-dividend yield stocks could be another option to get regular income. Latest report by Axis Securities showed that billionaire Anil Agarwal-led Vedanta delivered a dividend of Rs 81 per share with the highest dividend yield of 28.60 per cent in the last 12 months. Hindustan Zinc is next player in the list with a dividend yield of 16.1 per cent. The company gave a dividend of Rs 49.50 in the past 12 months. Promoter Vedanta Limited held 64.92 per cent stake in Hindustan Zinc as of December 2022.
Shares of Vedanta declined 21 per cent to Rs 280.25 in the last one year till March 15. On the other hand, Hindustan slid 3.4 per cent to Rs 295.20 during the same period. Meanwhile, the benchmark equity index BSE Sensex gained 3.18 per cent to 57555.90 on March 15, 2023 from 55776.85 on March 15, 2022.
The dividend yield is an indicator of the return that investors are earning on their shares. In general, a high dividend yield stock can provide you with a regular income. It helps you to treat a stock like a fixed deposit and you do not give much importance to the index levels.
With a dividend yield of 10.50 per cent, Coal India announced a dividend of Rs 23.30 in the past 12 months. It was followed by Oil & Natural Gas Corporation (9.2 per cent), Indus Tower (7.3 per cent), GAIL (5.5 per cent), SAIL (5.5 per cent), Power Grid (5.4 per cent), Piramal Enterprises (4.9 per cent), Tata Steel (4.7 per cent) and HCL Technologies (4.4 per cent).
Dividend yield of other major largecap companies Tech Mahindra, Hero MotoCorp, NTPC and Bharat Electronics also stood somewhere in between 3.8 per cent and 4.4 per cent.
According to market watchers, investors should also focus on the track record of the company in terms of dividend payout before investing in high-dividend stocks. One should also try to understand whether the company will be able to maintain the dividend in times of falling profit.
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