Coal India, Oil India, ONGC among top dividend-yield stocks — should you buy?

Coal India, Oil India, Oil and Natural Gas Corporation (ONGC) among other public sector undertaking (PSU) stocks are part of the top 10 dividend-paying companies, according to domestic brokerage firm Religare Broking.

‘’We have filtered the list of top dividend-paying companies based on their fundamental strength and selected 10 stocks. Investors, interested in dividend income, can consider these stocks for investment,'' said Religare Broking in its report.

At a dividend yield of 8.2 per cent, Coal India tops the list of the highest dividend-paying companies, followed by Oil India at a yield of 6.7 per cent. In FY22, Coal India's dividend per share (DPS) stood at ₹17 and in FY23, the DPS stood at ₹24.3, according to the brokerage.

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Here are the top 10 dividend-yield stocks:

1.Coal India: At a current market price (CMP) of ₹295, the coal miner gave a dividend yield of 8.2 per cent with FY22 DPS at ₹17 and FY23 DPS at ₹24.3

2.Oil India: At a CMP of ₹299, the oil explorer gave a dividend yield of 6.7 per cent with FY22 DPS at ₹14.3 and FY23 DPS at ₹20

3.PTC India: At a CMP of ₹133, the power major gave a dividend yield of 5.9 per cent with FY22 DPS at ₹7.8 and FY23 DPS at ₹7.8

4.Oil and Natural Gas Corporation (ONGC): At a CMP of ₹192, the oil major gave a dividend yield of 5.9 per cent with FY22 DPS at ₹10.5 and FY23 DPS at ₹11.3.

5.Gujarat State Fertilizers & Chemicals: At a CMP of ₹173, the chemical major gave a dividend yield of 5.8 per cent with FY22 DPS at ₹2.5 and FY23 DPS at ₹10.

6.Power Grid Corporation: At a CMP of ₹200, the PSU gave a dividend yield of 5.3 per cent with FY22 DPS at ₹14.8 and FY23 DPS at ₹10.7

7.Chennai Petroleum Corp: At a CMP of ₹510, the oil and gas major gave a dividend yield of 5.3 per cent with FY22 DPS at ₹2 and FY23 DPS at ₹27

8.GNFC: At a CMP of ₹612, the chemicals major gave a dividend yield of 4.9 per cent with FY22 DPS at ₹10 and FY23 DPS at ₹30

9. National Aluminium Company: At a CMP of ₹97, the PSU gave a dividend yield of 4.6 per cent with FY22 DPS at ₹6.5 and FY23 DPS at ₹4.5

10.NMDC: At a CMP of ₹148, the mining major gave a dividend yield of 4.5 per cent with FY22 DPS at ₹14.7 and FY23 DPS at ₹6.6.

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The dividend yield is a financial metric that represents the annual dividend payment of a firm as a percentage of its current share price. It is an indicator of the return that investors are earning on their shares.

A dividend yield is calculated by dividing the total dividend paid by the firm over the past year by the current stock price and expressing the result as a percentage.