Coal India, ONGC, BPCL Among 15 PSU Stocks With Dividend Yields Up To 7%

Public sector undertaking (PSU) stocks have always been popular among income-seeking investors due to their regular and stable dividend payouts. In recent years, many PSU stocks have also delivered strong price returns, offering investors both income and capital growth.

PSU Stocks Outperform Over The Long Term

The BSE PSU Index has risen nearly 240% over the last 5 years. This strong rally has been supported by better financial performance, government reforms, policy support and attractive valuations compared to private sector peers.

According to reports, many high-dividend PSU stocks have offered dividend yields of up to 7% in the last year. 

What Is Dividend Yield?

Dividend yield shows how much dividend a company pays in a year compared to its current share price. It is an important measure for investors who want regular income.

However, a high dividend yield alone should not be the only reason to invest. Investors should also look at the company’s financial health, earnings stability and long-term growth prospects.

Coal India Leads High Dividend-Paying Psu Stocks

Coal India continues to top the list with a dividend yield of 7% over the last year. The company paid ₹26.5 per share as a dividend during this period.

REC Limited follows with a dividend yield of 6%, after paying ₹19.7 per share in the last one year.

ONGC, BPCL and Others Offer 5% Dividend Yield

Several PSU stocks have delivered dividend yields of around 5%. These include ONGC, Power Finance Corporation (PFC), Bharat Petroleum Corporation Limited (BPCL) and Balmer Lawrie & Co.

Among these, BPCL paid the highest dividend amount of ₹17.5 per share in the past year. ONGC paid ₹12.3 per share, while PFC and Balmer Lawrie paid ₹16.4 and ₹8.5 per share, respectively.

Other PSU Stocks With Strong Dividend Yields

GAIL (India), Shipping Corporation of India, NMDC and National Aluminium Company (NALCO) have offered dividend yields of about 4% each.

Meanwhile, RITES, Power Grid Corporation of India, HPCL, Union Bank of India and Oil India have delivered dividend yields of around 3%, with dividend payouts ranging between ₹4.8 and ₹12 per share.

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Conclusion

PSU stocks continue to be attractive for investors looking for steady dividend income. With yields going up to 7%, many PSU stocks offer returns that are comparable to or even better than bank fixed deposits. However, investors should balance dividend income with business fundamentals and long-term growth before investing.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.