These PSU stocks are likely to pay higher dividends

Brokerage firm ICICI Securities believes that dividend per share (DPS) for most of the central public sector enterprises (CPSE) stocks are expected to rise over FY20-23 due to rising earnings per share and free cash flow from operations.

Some of the stocks in the list include Power Grid, NHPC, Oil India, NMDC, BEL, ONGC, Coal India and NTPC.


The brokerage also thinks that the current environment of negative real interest rates is positive for dividend yield stocks.

At present, the CPSE index has the highest dividend yield of around 6 per cent. It was followed by NSE Energy index (3.2 per cent), Metal (2.9 per cent), Media (2.7 per cent), Infrastructure (2 per cent) and IT (1.9 per cent).


Nifty50, Nifty Midcap 100, Nifty Smallcap 100, Nifty 500 and Nifty Next50 have a dividend yield between 1 per cent and 2 per cent.