With 9% dividend yield in FY23, this stock beats PPF, EPF, bank FD returns
1 min read . Updated: 09 Mar 2023, 12:28 PM IST
Premium- Sanofi India dividend history suggests that dividend declared by this pharma stock in FY23 is ₹683 per equity share
Dividend paying stock: A long term stock market investor not just earns from share price appreciation but from from various other means like interim or final dividend. bonus shares, etc. to understand how dividend stocks with high dividend yield can change whole dynamics of one's stock portfolio, we need to look at pharma stock Sanofi India. In current financial year, Sanofi India shares have declared dividend to the tune of ₹683 apiece. In FY2022-23, this dividend paying stock has given 9.10 per cent dividend yield to its shareholders as it was available at around ₹7,500 per share at the beginning of FY23.
Sanofi India dividend history
As per the information available on official BSE website — bseindia.com, Sanofi India shares gave dividend on three occasions. It traded ex-dividend on 12th April 2022 for payment of ₹309 per share special dividend and ₹181 per share final dividend. Later on 5th August 2022, Sanofi India share price traded ex-dividend for payment of ₹193 special dividend to its shareholders. So, the dividend paying pharma stock has given total ₹683 per share dividend to its shareholders in current financial year ( ₹309 + ₹181 + ₹193).
Sanofi India dividend yield
At the beginning of FY23, Sanofi India share price was quoting ₹7,500 per share. This means, if an investor had invested in this pharma stock at the beginning of current financial year, one's dividend yield in FY23 from Sanofi India dividend would have been around 9.10 per cent [( ₹683 x 100) / 7500].
Sanofi India dividend yield beats PPF, bank FD returns
Comparing Sanofi India dividend yield against risk free investment options like Public Provident Fund (PPF), Employees' Provident Fund (EPF) and bank fixed deposit (FD) interest rates. In FY23, PPF interest rate has remained stationary at 7.10 per cent per annum while EPF interest rate has remained 8.10 per cent per annum. Similarly, bank FD rates have surged from around 5 per cent to near 6 per cent in last one year.
Thus, Sanofi India dividend yield in FY23 has beaten PPF, EPF and bank FD returns in FY23. However, Sanofi India share price in FY23 has tumbled from around ₹7,500 per share levels to around ₹5,800 per share levels.