Dividend paying Vedanta stock yields 20% in FY23. Beats PPF, EPF, bank FD, equity mutual fund returns | Mint
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Business News/ Markets / Stock Markets/  Dividend paying Vedanta stock yields 20% in FY23. Beats PPF, EPF, bank FD, equity mutual fund returns
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Dividend paying Vedanta stock yields 20% in FY23. Beats PPF, EPF, bank FD, equity mutual fund returns

Dividend paying Vedanta stock has given total dividend of ₹81 per share in FY23

Dividend paying stock: At the beginning of FY23, Vedanta share price was at ₹405 apiece..Premium
Dividend paying stock: At the beginning of FY23, Vedanta share price was at 405 apiece..

Dividend paying stock: Vedanta shares are one of the dividend paying stocks that has awarded its shareholding by whopping interim and final dividend after April 2022 to till date i.e. in FY23. As per the information available on official BSE website — bseindia.com, Vedanta has declared four interim dividends in current financial year and grand total of the interim dividend given by the metal major is 81 per Vedanta share. If we compare this 81 dividend given by the company in financial year 2022-23, annual dividend yield of Vedanta comes at 20 per cent.

Vedanta dividend history

As mentioned above, Vedanta shares traded ex-dividend on four occasions after the beginning of FY2022-23. Vedanta shares first traded ex-dividend on 6th May 2022 for payment of interim dividend of 31.50 per share. Later, on 26th July 2022, Vedanta shares traded ex-dividend for payment of 19.50 per share interim dividend to its eligible shareholders. Likewise, Vedanta stocks traded ex-dividend on 29th November 2022 and 3rd February 2023 for the payment of 17.50 and 12.50 per share interim dividends respectively. So, metal major dividend paying stock has given away 81 per share dividend to its long term shareholders ( 312.50 + 19.50 + 17.50 + 12.50).

Annual dividend yield

Vedanta share price at the beginning of April 2022 was around 405 apiece. So, net dividend yield of Vedanta shares in FY23 comes at 20 per cent [( 81 / 405) x 100].

 

Beats PPF, EPF, bank FD and long term equity MF return

If we compare this 20 per cent annual yield of Vedanta dividend, then we would find that the metal stock has given more than double of the returns that a risk-free debt option like PPF (Public Provident Fund), Employees' Provident Fund (EPF), bank fixed deposit (FD) interest rates. In fact, a long term equity mutual fund investor expect 12 per cent return on one's money and this 20 per cent dividend yield by Vedanta is much higher than the expected equity mutual fund return by an investor in long term perspective.

PPF interest rate has remained stagnant at 7.10 per cent per annum, which is payable on quarterly basis. Similarly, EPF interest rate have remained at 8.10 per cent in FY23 whereas bank FD rates have surged from around 5.50 per cent to around 6.50 per cent in FY2022-23. Hence, Vedanta dividend yield of 20 per cent in FY23 has beaten the return given by PPF, EPF, bank FD and most of the equity mutual funds' return in this time.

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ABOUT THE AUTHOR
Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
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Published: 17 Feb 2023, 01:27 PM IST
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