You might have come across the highest dividend paying stocks in India, but now you might be looking for even more reliable stocks, that is government dividend stocks in India, Here in this article we have picked the best government stocks which pay good dividend yield.
The dividend is referred to the return of investment that is taken from the retained earnings of a company and given to its shareholders as a reward. Among all kinds of companies, Public sector undertakings are famously known to be the highest dividend payers.
A high-yield stock is a stock whose dividend yield is higher than the yield of an average which could be a fixed note or a fixed deposit. A Dividend yield percentage is calculated by dividing the annual dividend per share by the current share price of a stock.
| Sl No | Stock Name | Market Capital |
|---|---|---|
| 1 | BPCL | ₹ 71,455.19 Cr. |
| 2 | Coal India | ₹ 1,14,626.75 Cr. |
| 3 | Vedanta Ltd | ₹ 84,640.62 Cr. |
| 4 | PTC Ltd | ₹ 2,419.87 Cr. |
| 5 | IOC | ₹ 1,02,661.40 Cr. |
| 6 | HPCL | ₹ 34,711.88 Cr. |
| 7 | Power Grid | ₹ 1,48,263.25 Cr. |
| 8 | NALCO | ₹ 13,627.81 Cr. |
| 9 | REC | ₹ 25,664.06 Cr. |
| 10 | NMDC | ₹ 32,148.75 Cr. |
1. BPCL
Bharat Petroleum is known in India as one of the most famous petrol bunks in the country, But they are definitely much more than that. BPCL is a public sector undertaking that is an oil and gas explorer and producer. It is headquartered in Mumbai. BPCL plans to diversify into petrochemicals on a long-term basis. It is a fundamentally strong share and pays out at a dividend yield rate of 10.04%.
The shares are currently trading at Rs 328.
| Market Cap | ₹ 71,455.19 Cr. |
| P/E | 8.13 |
| P/B | 1.44 |
| Sales Growth | -18.23% |
2. Coal India
Coal India is an Indian public company owned by the government and founded in the year 1975. It is in the business of coal mining and other such processes. It is the largest coal producer in the world. stocks of coal-producing units prove to be a very good choice when it comes to maintaining your investment portfolio in long term. It is deemed to be a blue-chip company and It is a fundamentally strong share and pays out at a dividend yield rate of 8.88%.
. The shares are currently trading at Rs 197
| Market Cap | ₹ 1,14,626.75 Cr. |
| P/E | 10.23 |
| P/B | 7.01 |
| Sales Growth | -21.57% |
3. Vedanta Ltd
Vedanta Ltd is an Indian multinational company owned by the government that is indulged in the mining business. They are one of the world’s leading Oil & Gas and Metals companies. They have their operations in Karnataka, Goa, Rajasthan, and Odisha. They reported revenue of 91,422 crores in 2021 and have shown a consistent increase in revenue for the last few years. It is a fundamentally strong share and pays out at a dividend yield rate of 24.11%.
The stock is currently trading at Rs 317 rs.
| Market Cap | ₹ 84,640.62 Cr. |
| P/E | 4.91 |
| P/B | 1.09 |
| Sales Growth | 4.41% |
4. PTC Ltd
The Power trading corporation of India had changed its name to what it’s known today as PTC ltd and it was originally founded in the year 1999. It is a service-oriented organization that provides power trading solutions, cross-border power trading, and consultancy services.
Their primary focus is to develop a commercially vibrant power market in the country. PTC India’s subsidiary PTC India Financial Services Limited (PFS) provides total financing solutions.
It pays out at a dividend yield rate of 9.15%
It is currently trading at around Rs 82.
| Market Cap | ₹ 2,419.87 Cr. |
| P/E | 5.7 |
| P/B | 0.62 |
| Sales Growth | 3.16% |
5. IOC
The Indian Oil Corporation is an Indian government-owned company that is involved in the production of oil, gas, petrochemicals, and alternative energy source. It is also India’s highest rank Energy PSU on the Fortune-500 list. It possesses one of the largest customer bases in the country. It has over 32,000 fuel stations in the country. It is a fundamentally strong share and pays out at a dividend yield rate of 9.64%.
It is currently trading at Rs 118
| Market Cap | ₹ 1,02,661.40 Cr. |
| P/E | 4.25 |
| P/B | 0.75 |
| Sales Growth | -21.37% |
6. HPCL
Yet another Oil and gas company on the list, Hindusthan petroleum corporation limited is a public undertaking with a maharatna status. Their businesses span Refineries, Petrol, Gas, Lubricants, pipelines, natural gas, and Petrochemicals. It was founded in the year 1974. Hindustan Petroleum Corporation Limited (HPCL) is a Global Fortune 500 company, ranked at 260. It is a fundamentally strong share and pays out at a dividend yield rate of 9.77%.
The stock is currently trading at a price of Rs 233.
| Market Cap | ₹ 34,711.88 Cr. |
| P/E | 5.44 |
| P/B | 0.9 |
| Sales Growth | -13.31% |
7. Power Grid
Power Grid is an Indian PSU founded by the government of India in the year 1989. It is headquartered in Gurugram. It is involved in Transmission, distribution, and energy trading. It is based on the concept that a network of electrical transmission lines connects a multiplicity of generating stations to loads over a wide area. It is a Schedule ‘A’, ‘Maharatna ‘ Company. . It is a fundamentally strong share and pays out at a dividend yield rate of 6.86%.
It is currently trading at around 226 rs per share.
| Market Cap | ₹ 1,48,263.25 Cr. |
| P/E | 8.42 |
| P/B | 1.95 |
| Sales Growth | 4.09% |
8. NALCO
National Aluminium Company Limited is a government company founded in 1981 in Bhubaneswar. It scheduled a Navratna company and It is one of the biggest Bauxite-Alumina-Aluminium- Power generators in India. It manufactures Aluminium, Zeolite, Alumina & Hydrate. NALCO has posted an impressive net turnover and net profit. has maintained its dividend payout consistency by declaring dividends throughout. It pays out at a dividend yield rate of 6.50%.
It is currently trading at Rs 93.
| Market Cap | ₹ 13,627.81 Cr. |
| P/E | 4.62 |
| P/B | 1.09 |
| Sales Growth | 5.71% |
9. REC
REC Limited, formerly Rural Electrification Corporation Limited is PSU that undertakes financing to companies that are indulged in public infrastructure. It has a dividend payout ratio of 10.67%It is currently trading at Rs 119
| Market Cap | ₹ 25,664.06 Cr. |
| P/E | 2.55 |
| P/B | 0.5 |
| Sales Growth | 18.70 |
10. NMDC
NMDC is a government-owned mineral producer founded in the year 1958 and is one of the oldest in its industry. It is involved in the exploration of iron ore, copper, and other minerals. It generated a revenue of Rs 15,271 crores in 2021. The dividend yield is 6.12%
The shares are currently trading at Rs 127
Equity shares tend to be more volatile than others because both the supply and demand are relatively price elastic. Investors are requested to take caution and follow conservatism while trading. Happy Trading.
| Market Cap | ₹ 32,148.75 Cr. |
| P/E | 3.42 |
| P/B | 0.92 |
| Sales Growth | 31.38% |
