
SMC Global Securities senior research analyst Seema Srivastava has recommended five dividend stocks for investors seeking regular income: ITC, Coal India, ONGC, Indian Oil Corporation and Vedanta. ITC offers a dividend yield…
SMC Global Securities senior research analyst Seema Srivastava has recommended five dividend stocks for investors seeking regular income: ITC, Coal India, ONGC, Indian Oil Corporation and Vedanta. ITC offers a dividend yield of about 5%, Coal India yields 5-8% and ONGC yields about 5%. Indian Oil Corporation yields about 5.8% while Vedanta's yield is approximately 10%, the highest among the five.

Srivastava said ITC and Coal India are preferred as core dividend holdings due to strong cash flows and balance sheets. ONGC and IOC are cyclical income plays sensitive to crude prices, while Vedanta is a high-risk, high-income opportunity linked to commodity prices and financial leverage. She warned that a high dividend yield can sometimes signal a falling stock price rather than a good investment.
Dividend investing in India has gained traction among retail investors after the 2020 pandemic crash, with several PSU stocks like Coal India and IOC offering yields above bank fixed deposits. However, the sustainability of payouts depends on government policy: Coal India faces long-term risk from the energy transition, while IOC's earnings swing with crude prices and fuel pricing freedom. For Vedanta, the group's debt of over Rs 56,000 crore (FY24 annual report) makes its 10% yield a red flag unless metal prices stay elevated. Investors should track the next quarterly results in October for payout announcements and any change in dividend policy.
Source: livemint.com
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