PSU stocks a history of announcing dividends in February and March
PSU stock: Public Sector Undertakings (PSUs) in India are government-owned corporations that play a vital role in the country’s economy and infrastructure development. Established primarily through nationalization efforts beginning in the 1950s, these entities were created to provide essential services and promote equitable economic growth.
The government holds a minimum of 51 percent of the paid-up share capital in PSUs, giving it control over management and operations. PSUs are categorized based on their financial performance and operational autonomy into several groups: Maharatna, Navaratna, and Miniratna.
As companies begin announcing their financial results this month, investors looking for lower-risk options often turn to PSU stocks for their reliable dividend payouts. Analyzing historical patterns can offer insights into when specific stocks are likely to announce their dividends.
Here are a few PSU stocks that have historically issued dividends in the months of February and March:
1. Coal India Limited
With a market capitalization of Rs. 2.39 lakh crores, the shares of this Maharatna company, the largest coal producer in the world, rose by 2.28 percent on the BSE to Rs. 387.85 on Friday.
Coal India declared a dividend of Rs. 5.25 on February 20, 2024. Similarly, in 2023, the company paid a dividend of Rs. 5.25 on February 8, and in 2022, it paid a dividend of Rs. 5 on February 21. The company saw a slight decline in its revenue from operations, with a year-on-year decrease of around 6.4 percent to Rs. 30,673 crores in Q2 FY25, along with a 22 percent decrease in net profit to Rs. 6,275 crores over the same period.
Over the past year, the stock has delivered positive returns of about 2.30 percent and has gained nearly 0.52 percent year-to-date.
Established in 1975, Coal India Limited (CIL) is a leading company in the mining and production of coal. CIL primarily serves customers in the power and steel industries, with additional clients in sectors such as cement, fertilizers, and brick kilns.
2. Bharat Electronics Limited, with a market capitalization of Rs. 2.06 lakh crores, saw its shares rise by 2 percent on the Bombay Stock Exchange (BSE) to Rs. 282 on Friday. The company declared dividends of Rs. 0.7 on February 9, 2024, and another Rs. 0.7 on March 22, 2024. In 2023, dividends of Rs. 0.6 were paid on February 10 and March 24. In the second quarter of FY25, Bharat Electronics reported a significant increase in revenue from operations, reaching Rs. 4,605 crores, a 15 percent year-over-year rise, with a net profit growth of 38.4 percent year-over-year to Rs. 1,093 crores during the same period. The stock has delivered positive returns of approximately 51 percent over the past year but has decreased by nearly 4 percent year-to-date. Bharat Electronics Limited, a Navratna PSU under the Government of India, is primarily focused on developing electronic technology solutions for the defense and civilian sectors. The company’s strong presence in the industry has positioned it as a key player in the Indian defense sector, with plans for expansion into international defense and civil markets.
3. Power Finance Corporation Limited, with a market capitalization of Rs. 1.43 lakh crores, saw its shares rise on BSE to Rs. 433.30 on Friday. The company declared dividends of Rs. 3.5 on February 20, 2024, and another Rs. 3 on March 22, 2024. In 2023, dividends of Rs. 6 on February 25th.
In the second quarter of fiscal year 2025, the company experienced a significant increase in its revenue from operations, reaching Rs. 25,722 crores, a rise of almost 15 percent year-over-year. This growth was accompanied by a net profit increase of about 8.8 percent year-over-year to Rs. 7,215 crores during the same period.
Over the past year, the stock has delivered positive returns of approximately 10 percent but has decreased by nearly 3.35 percent year-to-date.
Established in 1986, Power Finance Corporation Limited is a Government Company that provides financial assistance to the power, logistics, and infrastructure sectors. It is registered with the Reserve Bank of India (RBI) as an Infrastructure Finance Company.
Moving on to Hindustan Aeronautics Limited, with a market capitalization of Rs. 2.75 lakh crores, the stock surged by 5.14 percent on the Bombay Stock Exchange (BSE) to Rs. 4,120.00 on Friday.
HAL announced a dividend of Rs. 22 on February 20, 2024. Similarly, in 2023, the company paid a dividend of Rs. 20 on March 20, and in 2022, it paid a dividend of Rs. 26 on February 17.
In the second quarter of fiscal year 2025, HAL experienced a slight increase in its revenue from operations, reaching Rs. 5,976 crores, a rise of nearly 6 percent year-over-year. This growth was accompanied by a net profit increase of about 22 percent year-over-year to Rs. 1,510 crores during the same period.
Over the past year, the stock has delivered positive returns of approximately 39.27 percent but has decreased by nearly 1 percent year-to-date.
Hindustan Aeronautics Limited (HAL) is involved in the design, development, manufacture, repair.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.