PSU stock NMDC yields 12% divided in 2024. Beats PPF, SSY, bank FD in 2024

Dividend Stocks: PSU stock NMDC which has yielded 12% divided in 2024, has beaten returns given by Public Provident Fund, Sukanya Samriddh Yojana, bank Fixed Deposit in 2024 varying up to slightly more than 8%.

The state run NMDC Ltd, that is the largest producer of iron-ore in the country also has remained one of the stocks that has rewarded its investors with handsome dividend yield.

About Dividend Yeild

Dividend yield always has remained one of the important parameters and factor the experts and investors like to consider while deciding on investment in a particular share or stocks, as well as for determining the returns given by a particular stock or share.

The dividend yield parameter gains more importance when the downtrend in the markets catches pace.

To determine the ratio, one needs to divide the dividend per share by the price per share to find the dividend yield, also known as the dividend–price ratio.

Additionally, it is calculated by dividing the entire yearly dividend payments made by a firm by its market valuation, presuming that the number of shares remains constant. A percentage is frequently used to express it.

NMDC Dividend Yield versus others

The Dividend distributed by NMDC during the last 12 months has been phenomenal. NMDC Ltd has distributed dividends per share of ₹7.5 per equity share during the last 12 months. Looking at the current market price of the stock of close to ₹62 , the same comes to dividend yeild of 12%, as per Axis Securities Data.

Notably as per Axis Securities Data , the NMDC's dividend yield is the highest among all mid cap companies. 

Thus the dividend yield by NMDC has beaten returns given by various instruments as Public Provident Fund, Sukanya Samriddhi Yojana, bank Fixed Deposit etc.

The interest rate in various schemes as Public Provident Fund, Sukanya Samriddhi Yojana, bank Fixed Deposit in 2024 has varied up to a maximum of slightly more than 8%. Comparatively NMDC dividend yield has outpaced returns by most other schemes as PPF, SSY and Bank FDs etc.

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.