Hindustan Zinc dividend: Vedanta subsidiary yields 23.5% in FY23. Beats mutual funds, PPF, EPF, bank FD return
4 min read . Updated: 25 Mar 2023, 12:12 PM IST
PremiumHindustan Zinc dividend: Vedanta subsidiary company has declared total interim dividend of ₹75.50 per share in FY23
Hindustan Zinc dividend: The Vedanta subsidiary recently announced ₹26 per share fourth interim dividend for its shareholders in the financial year 2022-23. After announcement of this fourth interim dividend, Hindustan Zinc dividend record date was also fixed on 29th March 2023. This means, the dividend stock's net dividend declared in FY23 is ₹75.50 per share and dividend yield in FY23 is around 23.50 per cent, which is much higher than the PPF interest rate, EPF interest rate and bank fixed deposit (FD) return.
Informing Indian bourses about Hindustan Zinc dividend record date, the Vedanta subsidiary said, "Board of Directors of the Company in its meeting held on March 21, 2023 have approved Fourth interim dividend of Rs. 26/- per equity share i.e. 1300 % on face value of Rs. 2/- per share for the Financial Year 2022-23 amounting to Rs. 10985.83 Crores."
Hindustan Zinc dividend history
As per the information available on BSE's official website — bseindia.com, Hindustan Zinc has declared interim dividend to its shareholders on four occasions. It first traded ex-dividend stock on 20th July 2022 for payment of ₹21 interim dividend per equity share to its eligible shareholders. Later, it traded ex-dividend stock on 23rd November 2022 for payment of ₹15.50 per share interim dividend to its eligible shareholders. On 30th January 2023, the Vedanta subsidiary stock traded ex-dividend stock for payment of ₹13 per share interim dividend.
No, recently Hindustan Zinc has announced fourth interim dividend in FY23 and Hindustan Zinc dividend record date has also been fixed on 29th march 2023. This means the stock will trade ex-dividend stock on 29th March for payment of ₹26 interim dividend to its eligible shareholders.
Hindustan Zinc dividend yield
At the beginning of FY23, Hindustan Zinc share price was around ₹320 and total dividend declared by the Vedanta subsidiary company is ₹75.50 ( ₹21 + ₹15.50 + ₹13 + ₹26), which means dividend yield of Hindustan Zinc in FY23 is around 23.50 per cent [( ₹75.50 x 100) / 320].
Alpha return against PPF, EPF, bank FD
Comparing Hindustan Zinc dividend yield in FY23, PPF interest rate in FY23 remained unchanged at 7.10 per cent whereas EPF return remained steady at 8.10 per cent. During the current fiscal bank FD return has risen from 5.50 per cent to around 7 per cent per annum. Hence, all these risk free instruments have been outperformed by the dividend yield of 23.50 per cent by this Vedanta subsidiary stock.
Outshines equity mutual funds
In fact, this dividend yield is much higher than equity mutual fund return that a long term investor expects. As per the 15 X 15 X 15 rule of mutual funds, a long term investor can expect 15 per cent annual return on one's money invested for 15 years or more.