Sectors with the highest 1-year dividend yield
New Delhi, Oct 2 (IANS) The metals and mining sector has the highest dividend yield of 5.2 per cent, as per an analysis by Trendlyne.
Companies with the highest dividend yield in this sector are Vedanta, Hindustan Zinc and National Aluminium Company with 30.7 per cent, 19.8 per cent and 4.8 per cent, respectively.
Though Vedanta tops the list, its outsize dividend yield can be attributed to a 20 per cent drop in its stock price over the past year. This shows how a plummeting share price can push up yields, as per Trendlyne.
Vedanta chose to distribute a substantial dividend of Rs 101.5 per share to its shareholders to meet its holding company’s financial obligations and debt repayments. This massive payout set a new record for the company.
Moving on to the zinc major, Hindustan Zinc (HZL), its share price increased by 9.9 per cent. Vedanta holds a 65 per cent stake in HZL as of June 2023.
The company’s cash equivalents stood at Rs 10,061 crore in FY23, compared to borrowings of Rs 11,841 crore.
Meanwhile, the utilities sector had an overall dividend yield of 2.4 per cent in FY23. The top dividend-paying stocks in this sector are Power Grid Corporation, CESC and NHPC offering yields of 5.6 per cent, 4.9 per cent and 3.6 per cent, respectively, as per Trendlyne.
All three companies saw their share prices rise by at least 15 per cent in the past year.
Next comes the software and services sector with an average dividend yield of 2.3 per cent in the past year. The top performers in this sector are Oracle Financial Services Software, (OFSS), HCL Technologies and Tata Consultancy Services with yields of 5.4 per cent, 3.8 per cent and 3.2 per cent, respectively, as per Trendlyne.
HCL Technologies saw a 41 per cent surge in its stock price over the past year but did not issue any special dividends. Overall, all three companies have managed to post high dividend yields despite their share prices rising sharply in the past year.
The food, beverage and tobacco had a dividend yield of 2.2 per cent in the past year.
The stand-out companies in this sector are Godfrey Philips, Godrej Agrovet and EID Parry with yields of 3.5 per cent, 2.1 per cent and 1.7 per cent, respectively, as per Trendlyne.
The tobacco major, Godfrey Phillips, saw its share price increase by 81 per cent during the same period. In this sector, two companies, Godrej Agrovet and EID Parry (India), have seen their stock prices fall by 7.8 per cent and 4.8 per cent, respectively, in the past year.
The oil and gas sector had a dividend yield of 1.4 per cent in the past year. Companies in the lead are Oil India, ONGC and Castrol India with yields of 7.2 per cent, 6 per cent and 4.6 per cent, respectively.
Among the stocks that made it to the list, Vedanta, Godrej Agrovet and EID Parry’s (India) share prices fell in the past year, as per Trendlyne.