Dividend Paying Stock: A long term investor gets some additional advantages over short term investors as listed companies reward their loyal shareholders from their capital reserves by declaring interim or final dividends, bonus shares, buyback of shares etc. Sometimes, these rewards are simple but there are some dividends. Paying shares that give dividends to such an extent that it beats government-backed small savings schemes like Public Provident Fund (PPF) interest rates and bank fixed deposit interest rates.
For those who believe claims when presented with examples. He needs to look at the shares of Hindustan Zinc. At the beginning of FY23, the share price of Hindustan Zinc was around 320 each and when FY23 is about to end, it is quoting around 311.50 per share level, means the stock has fallen 8.50 per share. However, during this time period, shares of Hindustan Zinc have traded ex-dividend on three occasions, providing a net annual dividend of Rs. 49.50 per share. It means, the net income of the shareholder of Hindustan Zinc due to these three dividends is 41 per share.
Hindustan Zinc Dividend History
as per the information available on bse website, Hindustan Zinc shares traded Ex-Dividend for payment on July 20, 2022 21 per share interim dividend. The state-owned dividend paying stock again traded ex-dividend on 23 November 2022. 15.50 per share as interim dividend. On January 30, 2023, Hindustan Zinc shares to trade again ex-dividend to be paid 13 per share interim dividend. This means, Hindustan Zinc The stock has paid total interim dividend 49.50 ( 21+ 15.50+ 13) per share.
Hindustan Zinc Dividend Yield FY23
If someone had bought shares of Hindustan Zinc at the beginning of FY23, he would have got one share 320. Hindustan Zinc share price today is around 311.50. means lost 8.50 per share but received 49.50 per share by way of interim dividend. hence, Net 41 per share of Hindustan Zinc so far in FY23 ( 49.50 – 8.50).
Hence, the net dividend yield of Hindustan Zinc shares is around 12.80 in FY23. However, if we leave aside the fall in Hindustan Zinc share price during FY23, the net dividend yield of Hindustan Zinc in FY23 is around 15.50 per cent.
Hindustan Zinc Dividend Vs PPF Vs Bank FD Returns
Comparing the 12.80% net return or 15.50% dividend yield of Hindustan Zinc shares with PPF and bank FD returns, we come to know that PPF interest rate remains at 7.10% per annum payable quarterly while bank FD returns around Rs. increased from 5 percent to about 6 percent. This means that the dividend yield of Hindustan Zinc is more than double of PPF returns and bank FD returns over the same period.
Know your inner investor
Do you have guts of steel or are you a victim of insomnia regarding your investments? Let’s define your investment approach.
catch all business News, market news, today’s fresh news events and Breaking News Update on Live Mint. download mint news app To get daily market updates.