Often trailing their privately owned peers for most of the year, stocks of government companies become star buys as the financial year draws to a close. The reason? Dividends.
Historically, February and March have seen companies pay higher dividends. With North Block needing to balance its books, high dividend budgets and cash in hand make profitable PSUs the best bets in the spring.
This year, Coal India and Hindustan Zinc may give higher than expected dividends in the next two months. In the first ten months of the fiscal, the government has received only 5 per cent of the budgeted dividend income for 2017-18. Coal India, ONGC, Hindustan Zinc (HZL), NMDC and NALCO together accounted for more than half of the government’s dividend income last year. However, with the recent ONGCHPCL merger and capex requirements of Nalco and NMDC, the burden will likely be on Coal India and HZL. Read More…
Latest posts by ET Energy World (see all)
- Oil prices steady, U.S.-Iran tensions remain in focus - June 25, 2019
- India’s annual coal demand rises 9.1% to nearly 1 billion tonnes: minister - June 25, 2019
- GST Council to consider reducing tax on electric vehicles: Anurag Thakur - June 24, 2019