INVESTMENTS
These 10 PSU Stocks has the Highest Dividend Yield
Dividend Stocks
When investing in dividend-paying stocks, dividend yield is one of the most important things to consider. It is a measure of the returns that investors receive on their investments. We chose 10 firms from a list of the best dividend-paying
companies based on their fundamental soundness. Dividend income investors might consider investing in these stocks.
Coal India Sector:
Mining | P/E (x): 8.9
Dividend Yield: 10.5%
Dividend Yield: 10.5%
Coal India has a dividend yield of 9% in the last 12 months, and the company has paid equity dividends of Rs 24.25 in the same period. Power Grid Corporation has delivered a dividend yield of 7% in the past one year and paid dividends of Rs
14.75.
Steel Authority of India
Sector: Metals | P/E (x): 3.4
Dividend Yield: 9.6%
Why invest in PSU stocks?
Stability and Reliability:
Investing in PSU stocks or shares offer a remarkable sense of stability and reliability. Owing to their government ownership and support. The backing of the government provides a certain level of assurance, making them an attractive option, especially during times of market uncertainty.
Investing in PSU stocks or shares offer a remarkable sense of stability and reliability. Owing to their government ownership and support. The backing of the government provides a certain level of assurance, making them an attractive option, especially during times of market uncertainty.
Dividend Income:
PSU stocks are attractive due to their consistent dividend distribution history. with shareholders. Many PSUs have a tradition of sharing a portion of their profits with investors. That, in turn, provides a regular income stream and potentially enhances the overall returns on investment.
PSU stocks are attractive due to their consistent dividend distribution history. with shareholders. Many PSUs have a tradition of sharing a portion of their profits with investors. That, in turn, provides a regular income stream and potentially enhances the overall returns on investment.
Long-Term Growth Potential:
While PSU stocks might not offer explosive short-term gains, they often provide gradual and sustainable long-term growth. This can be especially beneficial for investors who prioritise a steady appreciation of their investments over time.
While PSU stocks might not offer explosive short-term gains, they often provide gradual and sustainable long-term growth. This can be especially beneficial for investors who prioritise a steady appreciation of their investments over time.
Economic Growth Catalyst:
Investing in PSU stocks contributes directly to sectors that are critical for a country’s economic development. These sectors can encompass a wide range of industries. This includes energy, telecommunications, infrastructure, and more, all of which play pivotal roles in driving economic progress.
Investing in PSU stocks contributes directly to sectors that are critical for a country’s economic development. These sectors can encompass a wide range of industries. This includes energy, telecommunications, infrastructure, and more, all of which play pivotal roles in driving economic progress.
Diversification Benefits:
Diversification is a cornerstone of a well-balanced investment portfolio. By adding PSU stocks to your investment mix, you are diversifying your portfolio beyond privately-owned companies. This diversification can help mitigate risks associated with sector-specific downturns, providing a more resilient portfolio overall.
Diversification is a cornerstone of a well-balanced investment portfolio. By adding PSU stocks to your investment mix, you are diversifying your portfolio beyond privately-owned companies. This diversification can help mitigate risks associated with sector-specific downturns, providing a more resilient portfolio overall.
Government Support and Ownership:
Government ownership lends an additional layer of stability to PSU stocks. It implies that these companies have the support and backing of the government. This can act as a stabilising force even in times of market turbulence.
Government ownership lends an additional layer of stability to PSU stocks. It implies that these companies have the support and backing of the government. This can act as a stabilising force even in times of market turbulence.
Resilience in Volatile Markets:
PSU stocks have demonstrated a tendency to weather market volatility relatively well. Government ownership, conservative management, and essential service focus enhance the resilience of PSU stocks in market turbulence.
PSU stocks have demonstrated a tendency to weather market volatility relatively well. Government ownership, conservative management, and essential service focus enhance the resilience of PSU stocks in market turbulence.
Overview of the best PSU stocks.
Oil and Natural Gas Corporation:
ONGC is India’s largest oil and gas exploration and production company. It holds a dominant position in the country’s energy sector, contributing significantly to domestic oil and gas production. With its robust presence in both upstream and downstream activities, ONGC is a compelling PSU stock.
ONGC is India’s largest oil and gas exploration and production company. It holds a dominant position in the country’s energy sector, contributing significantly to domestic oil and gas production. With its robust presence in both upstream and downstream activities, ONGC is a compelling PSU stock.
Bharat Petroleum Corporation
BPCL is a notable PSU with a diversified portfolio across the energy spectrum. It plays a crucial role in India’s energy security, offering stability and expansion opportunities. Government support and strategic expansion further position BPCL as an appealing choice for investors.
BPCL is a notable PSU with a diversified portfolio across the energy spectrum. It plays a crucial role in India’s energy security, offering stability and expansion opportunities. Government support and strategic expansion further position BPCL as an appealing choice for investors.
Indian Oil Corporation
IOC, another major PSU, operates across the energy sector, ensuring India’s energy security. It has a massive market influence, government backing, and a stable dividend history. These factors make it an attractive option for investors.
IOC, another major PSU, operates across the energy sector, ensuring India’s energy security. It has a massive market influence, government backing, and a stable dividend history. These factors make it an attractive option for investors.
The Categorisation of PSUs in India.
Central Public Sector Enterprises (CPSEs):
CPSEs are PSUs owned and controlled by the Central Government of India. They play a crucial role in the country’s economic growth and development across diverse sectors. CPSEs can further be categorised into three groups:
CPSEs are PSUs owned and controlled by the Central Government of India. They play a crucial role in the country’s economic growth and development across diverse sectors. CPSEs can further be categorised into three groups:
Maharatna:
These are the most significant CPSEs with extensive operations and high profitability. They have greater financial autonomy and can make substantial investments and take important decisions without government approval.
These are the most significant CPSEs with extensive operations and high profitability. They have greater financial autonomy and can make substantial investments and take important decisions without government approval.
Navratna:
These CPSEs also hold considerable operational and financial autonomy. They are profitable and have the flexibility to invest in strategic initiatives.
These CPSEs also hold considerable operational and financial autonomy. They are profitable and have the flexibility to invest in strategic initiatives.
Miniratna:
Miniratna CPSEs have a more modest level of autonomy. They are further classified into Category-I and Category-II, with differing levels of operational independence.
Miniratna CPSEs have a more modest level of autonomy. They are further classified into Category-I and Category-II, with differing levels of operational independence.
State Public Sector Enterprises (SPSEs):
SPSEs are PSUs owned and controlled by state governments. They operate at the state level and contribute to regional economic growth. SPSEs are present across various sectors, such as power, transport, and agriculture.
SPSEs are PSUs owned and controlled by state governments. They operate at the state level and contribute to regional economic growth. SPSEs are present across various sectors, such as power, transport, and agriculture.
FREQUENTLY ASKED QUESTIONS
PSU stocks refer to shares of companies that are categorised as Public Sector Undertakings (PSUs). These are government-owned corporations or enterprises that operate in various sectors, including energy, finance, manufacturing, and infrastructure.
Investing in PSU stocks depends on your financial goals, risk tolerance, and investment strategy. These stocks provide stability and dividends. However, it’s crucial to research extensively, evaluate potential risks, and consult financial experts before making any investment choices.
PSU sector stocks are performing better due to digital tech adoption. Additionally, the country’s favourable economy, improved assets, credit expansion, higher net interest margins (NIMs), and government reforms also contribute.
The full form of PSU is Public Sector Undertaking. These are state-owned corporations or enterprises in India.
The best PSU Stocks to buy in India are:
1. Oil and Natural Gas Corporation (ONGC)
2. Bharat Petroleum Corporation
3. Indian Oil Corporation