Dividend yield of this stock beats PPF, EPF, bank FD return in FY23. Do you own?

Indian stock market

Shares of Coal India Ltd. are among the high dividend yield stocks for the fiscal year 2022–2023. According to data on the official BSE website,, Coal India shares have three times traded ex-dividend, with the company paying a dividend of 23.25 rupees per share this fiscal year. This has resulted in a net dividend yield of 11.60 percent during this period.

Dividend from Coal India for FY23
As previously mentioned, the Coal India share traded ex-dividend three times during the fiscal year 2022–2023. On August 11, 2022, when the final dividend of $3 per share was paid, it first started paying dividends. Afterwards, shares of Coal India traded ex-dividend for 15 per share, which represented the interim dividend due in the fiscal year 2022–2023. This dividend-paying stock once more went ex-dividend on February 8th, 2023, for an interim dividend payment to the qualified shareholders of 5.25 per share.

Coal India’s stock had a dividend yield in FY23.
As a result, the net dividend paid by this PSU stock that pays dividends is 23.25 (or 3 plus 15 plus 5.5). Coal India shares were priced at about 200 at the start of the fiscal year 2022–2023, translating to a dividend yield for that year of 11.60% [(3 + 15 + 5.25) / 200 x 100]. Investment value has been estimated to be 200 per share, which was Coal India’s share price at the start of the fiscal year 2022–2023, in order to determine the dividend yield for Coal India.

PPF, EPF, and bank FD returns are late.
When we compare the PPF interest rate, EPF return, and bank FD interest rate over the course of FY23, we find that the PPF interest rate has remained constant at 7.10%, the EPF return, in which some investors put additional money by choosing voluntary provident fund (VPF), has remained constant at 8.10%, and the bank FD rates have increased from about 5% at the start of FY23 to about 7% per annum levels at this point. Hence, compared to Coal India’s 11.60% dividend yield in FY23, all of these risk-free small savings plans have produced lower returns.

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