1:2 bonus shares: Dividend paying stock yields 9.5%. Beats PPF, EPF, FD return
Dividend paying stock announced 1:2 bonus shares in June 2022
Dividend paying stocks can sometimes emerge a good bet against traditional risk-free investment options like Employees' Provident Fund (EPF), Public Provident Fund (PPF) or bank fixed deposit (FD). In last one year, a good number of stocks listed on Dalal Street have delivered better annual dividend yield than PPF, EPF or bank FD interest in this period. Shares of Indian Oil Corporation (IOC) Limited is one such stock. In last one year, the state-owned company announced dividend on two occasions whereas it declared bonus shares for once as well. Taking both dividends and issuance of bonus shares in last one year, the dividend yield of IOC shares come around 9.50 per cent, much higher than bank FD interest rates or PPF and EPF interest rates.
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