New Delhi: Coal India Ltd., the world’s biggest miner of the fuel, said it will pay a dividend of Rs1.15 a share, its second payout in less than a month.
The payment will amount to Rs713 crore ($109 million), according to Bloomberg calculations based on a stock exchange filing on Sunday.
The Kolkata-based company has set 29 March as the record date for the latest payout. Earlier this month, Coal India announced a dividend of Rs18.75 a share, which was 32% lower than the previous year’s payout.
Coal India earnings have declined because of provisions for a retroactive salary increase for staff. The company’s stock has declined about 0.7% this year, compared with a 10.5% gain in the benchmark S&P BSE Sensex.
“Until there is a recovery in earnings, the dividend yield remains the biggest draw for investors,” said Abhisar Jain, an analyst with Centrum Broking Ltd. in Mumbai. “Also, there seems to be some pressure from the government to pay more.”
The federal government owns 79% of Coal India, which has reported a year-over-year decline in earnings in the past three quarters. Bloomberg