New Delhi: On Wednesday, almost all PSU stocks with high dividend yield opened in green on the bourses. Oil India share price was up almost one per cent at Rs 555 apiece on the Bombay Stock Exchange (BSE). Power Finance Corporation (PFC) share price was up more than one per cent to Rs 332 on the BSE. While, thematic index Nifty CPSE opened 0.21 per cent higher at 7.087. After Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in Lok Sabha on Tuesday, the PSU stocks have again come under focus. PSU stocks with high dividend yields are expected to get set for a fresh round of rally.
According to the Budget 2024 documents, the government of India (GoI) wants PSUs to give more dividends to the shareholders in financial year 2024-25 (FY25.) Consequently, the government companies are expected to doll out hefty dividends in the ongoing fiscal. PSU stocks might regain interest of stock market investors leading to a fresh round of rally.
Stock Market Expert on PSU Stocks
CNI Research, CMD, Kishore Ostwal, said, the government has doubled the target of receipt of dividends from public corporations for the current fiscal. He said, “I expect PSU stocks to rally from here.” PSU Stocks with high dividend yield like GAIL Ltd, Indian Oil Corporation Ltd (IOC), Coal India Ltd, BPCL, ONGC Ltd, PowerGrid, PFC, Oil India, etc are expected to get high traction from those investors who buy shares to get a dividend.
PSU Stock Dividend Yield (%) Share Price (Rs)
BPCL 10.29 307
IOC 7.24 166
Coal India 5.24 487
ONGC 3.90 315
Oil India 3.06 555
PowerGrid 3.00 332
PFC 3.00 530
Gail 2.51 220
Note – The dividend yields are calculated for FY25 based on companies’ current share prices.
According to the Annual Financial Statement of the Government for 2024-25, the Budget Estimates 2024-2025 of dividend and profit receipts stand at Rs 2.89 lakh crore from Rs 1.54 lakh crore in revised estimates 2023-24. The government wants 87 per cent more dividends in FY25 than previous fiscal.
The GoI being the highest shareholder in PSUs automatically becomes highest receipent of dividends everytime these undertakings declare dividends.
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PSU Stock Oil India’s share price opened one per cent higher at Rs 555 apiece on the Bombay Stock Exchange (BSE). While, PFC share price was up more than one per cent to Rs 332 on the bourse. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
