Coal India, ONGC, BPCL among 5 PSU stocks with highest dividend yields

Dividend Stocks; Coal India, Oil and Natural Gas Corporation (ONGC), Bharat Petroleum Corporation Ltd (BPCL) are among the top 5 PSU stocks with the highest dividend yields in FY25, suggests Axis Securities data. Other stocks are Indian Oil Corporation Ltd and REC Ltd.

Significance of dividend yield

The dividend yield is a financial metric that shows how much a company pays out in dividends each year in comparison to the price of its stock. A decent dividend yield is defined as three to five percent or more.

However, the market's condition also matters. The dividend yield is one of the most important factors that investors consider when buying dividend-paying stocks.

Top dividend-paying PSU stocks

The highest paying PSU dividend yield stock during FY25 was Coal India Ltd. Coal India's dividend yield of 7% was remarkable and Coal India during the last 12 months has paid a dividend of ₹26.35.

Oil and Natural Gas Corporation (ONGC) is also not far behind Coal India, having a handsome dividend yield of 6%. Oil and Natural Gas Corporation (ONGC) during the last 12 months has paid a dividend of ₹13.5 per equity share.

Bharat Petroleum Corporation (BPCL) also has a dividend yield of 6% during the last 12 months, which is at par with that of Oil and Natural Gas Corporation (ONGC) and also not far behind that of Coal India. Bharat Petroleum Corporation (BPCL) has paid a dividend of ₹15.5 per equity share during the last 12 months.

Indian Oil Corporation Ltd is another state-owned Oil and Gas downstream company that has given a dividend yield of 5%, which is very close to that of Bharat Petroleum Corporation Ltd. Indian Oil Corporation Ltd has paid a dividend of ₹7 per equity share during the last 12 months.

REC Ltd is the fifth stock among the top 5 PSU stocks with high dividend yields. It has a 5% dividend yield, which is comparable to that of Indian Oil Corporation Ltd. REC Ltd has paid a dividend of ₹20.4 per equity share during the last 12 months.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions