Vedanta dividend yield at 28% in one year. Beats PPF, EPF, mutual funds, bank FD return
2 min read 30 Mar 2023, 10:07 AM ISTVedanta dividend in last one year stands at ₹101.50 per share
PremiumVedanta dividend 2023: The dividend stock has announced fifth interim dividend in the financial year 2022-23. After ₹20.50 per share dividend declared recently, the Vedanta dividend yield in last one year stands at around 28 per cent, which is much higher than the return given by Public Provident Fund (PPF), Employees' Provident Fund (EPF) and bank fixed deposit (FD). In fact, this dividend yield of 28 per cent in last one year is higher than the expected long term return from equity mutual funds.
Vedanta dividend history
As per the information available on the official BSE website — bseindia.com, Vedanta Ltd has declared five interim dividends in the financial year 2022-23. For fifth interim dividend of ₹20.50 per share, Vedanta dividend record date 2023 has been fixed on 7th April 2023.
Prior to this, Vedanta has traded ex-dividend on four occasions. It traded ex-dividend 6th May 2022 for payment of ₹31.50 per share interim dividend to its shareholders. On 26th July 2023, Vedanta Ltd once again traded ex-dividend for payment of ₹19.50 per share interim dividend to its shareholders.
On 29th November 2022, Vedanta Ltd once again traded ex-dividend for payment of ₹17.50 per share interim dividend. Likewise, on 3rd February 2023, Vedanta Ltd traded ex-dividend stock for payment of 12.50 per share. Now, on 7th April 2023, Vedanta will trade ex-dividend stock for payment of ₹20.50 per share.
Vedanta dividend yield
Therefore, in last one year, dividend declared by Vedanta Ltd is ₹101.50 ( ₹31.50 + ₹19.50 + 17.50 + 12.50 + 20.50) per share. One year ago, Vedanta share price was around ₹400 per share. So, Vedanta dividend yield in last one year is around 25 per cent [(101.50/4000 x 100].
Beats PPF, EPF, bank FD, equity mutual funds return
Comparing this 25 per cent dividend yield given by Vedanta in last one year, PPF interest rate has remained uniform at 7.10 per cent in last one year, whereas EPF interest rate remained at 8.10 per cent. Recently, it has been raised to 8.15 per cent, which is still far away from 25 per cent annual dividend yield of Vedanta Ltd. In last one year bank fixed deposit (FD) interest rate has surged from around 5.50 per cent to around 7 per cent, but it is still much below from the Vedanta dividend yield in last one year.
In fact, a long term equity mutual fund investor expects 15 per cent return on one's investment following 15 X 15 X 15 rule of mutual funds.
