Coal India Net Profit Rises 26% YoY to Rs 8682 Crores, Surpassing estimates
One of the dividend-paying stocks on the Indian stock market is Coal India. This PSU stock has declared a dividend of ₹24.50 (₹4,₹15.25, and ₹5.25) for the fiscal year 2025.On March 31, 2023, the price of a Coal India share ended at ₹213.65 a share on the NSE.
This indicates that in FY24, dividend-paying company Coal India shares declared dividends of 11.50 percent, exceeding the interest rates of the Public Provident Fund (PPF), Sukanya Samriddhi Yojana (SSY), and bank savings account returns for the just concluded fiscal year 2023–2024.
According to data on the official BSE website, bseindia.com, Coal India shares traded ex-dividend on August 18, 2023, with eligible owners set to receive a dividend of ₹4 per share. In order to determine the list of eligible shareholders for the payment of an interim dividend of ₹15.25 per share that will be payable in the financial year 2023–24, Coal India shares traded ex-dividend once more on November 21, 2023.
For the final time in FY24, Coal India shares traded ex-dividend on February 20, 2024, in anticipation of the interim dividend payment of ₹5.25 per share. Accordingly, Coal India Ltd. declared a total dividend of ₹24.50 (₹4 + ₹15.25 + ₹5.25) per share for the full fiscal year of FY24.
Given that Coal India’s stock closed at ₹213.65 on March 31, 2023, the company’s dividend yield for the 2024 fiscal year is 11.50 percent [{(₹4 + ₹15.25 + ₹5.25)/213.65} x 100].
The Public Provident Fund (PPF) and SSY interest rates in FY24 were both 7.10 percent and 8.20 percent, respectively, while frontline Indian banks’ bank FD yields stayed at six to six and a half percent.
This indicates that in FY24, the returns provided by bank fixed deposits and government-sponsored modest savings plans were substantially lower than the dividend yield of Coal India.
The price of a Coal India share increased from 213.65 to ₹434.10 in FY24, yielding an annual yield of more than 100% in 2023–2024.
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