Dividend stock hits 52-week high on fourth day in a row. Do you own?
Indian Oil Corporation (IOC) shares hit a new 52-week high during Tuesday deals on the NSE, climbing to ₹90.95 apiece
PremiumIndian Oil Corporation or IOC shares are one of the dividend stocks that has been in uptrend after bottoming out in October 2022. However, some steam is still left in this oil stock as IOC share price on Tuesday opened upside and went on to hit intraday high of ₹90.95 apiece levels on NSE, which turned out to be its new 52-week high on NSE. As per the information available on BSE, this dividend stock has been climbing to new 52-week highs for the last four straight sessions.
IOC dividend history
As per the information available on BSE website — bseindia.com, IOC shares are one of the dividend stocks in Dalal Street. In the year 2022, this PSU stock traded ex-dividend on two occasions and its dividend yield in 2022 was over 10 per cent. IOC share traded ex-dividend for the first time in 2022 on 9th February 2022 for payment of ₹4 per share interim dividend to its eligible shareholders. Later on, it traded ex-dividend on 11th August 2022 for payment of ₹2.40 per share interim dividend to its eligible shareholders. so, net dividend declared by IOC in 2022 is ₹6.40 per share.
However, in between these two interim dividend announcements, IOC declared 1:2 bonus shares that means if an investor had taken position in this PSU stock at the beginning of new year 2022, one's shareholding in the company would have surged 50 per cent after issuance of 1:2 bonus shares. Hence, net dividend received by a long term investor would have been ₹7.60 ( ₹4 + ₹2.4 + ₹1.2), where ₹1.20 per share additional dividend came due to the bonus shares received by the shareholders after 1:2 bonus shares.
IOC dividend yield
At the beginning of new year 2022, IOC share price was arund ₹74.50 apiece whereas net dividend declared by IOC was ₹7.60 per share. So, IOC dividend yield in 2022 stands at 10.20 per cent, which is much higher than the annual return given by Public Provident Fund (PPF), Employees Provident Fund (EPF) and bank fixed deposit FD) returns.
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