Nirlon Ltd, Castrol India Ltd, and Coal India Ltd are among the companies that have provided dividend yield to the tune of over 5 per cent in the recently concluded financial year 2023-24.
As per a report by IDBI Capital, a financial services provider, these stocks have provided dividends at 5.8 per cent, 5.6 per cent, and 5.2 per cent, respectively. Nirlon Limited is into the development and management of industrial parks. The market cap of Nirlon Ltd is Rs 4,040 crore as of today, BSE data showed. The dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price. Power Grid Corporation of India Ltd, HCL Technologies Ltd, Swaraj Engines Ltd, VST Industries Ltd, Tech Mahindra Ltd, Heidelberg Cement India Ltd, Petronet LNG Ltd, and ITC Ltd are some of the other stocks that provided dividends to the tune of 3 per cent or above. A dividend is a reward that companies often provide to their shareholders, though it is not mandatory, from a portion of their earnings. The IDBI Capital report considered companies having market cap of more than 800 crores, dividend yield should be more than 3 per cent, the company should be profit making for past three years, five year average ROE (return on equity) should be more than 9 per cent, special dividend (one-off) are not taken into consideration, and while consistent special dividend are considered. IDBI Capital categorically stated that the report merely recorded the data pertaining to dividends declared by companies. It cautioned that nothing in the report should be construed as a recommendation to buy, sell or invest in any manner in the securities or investment products of the companies. "This report is not intended to take into account the particular investment objectives, financial conditions, or needs of individual clients," IDBI Capital said. (ANI)
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