Vedanta Stock Gives 20% Return In FY23


Last Updated: February 18, 2023, 17:43 IST

Vedanta’s annual dividend yield equals to 20%, which is higher than the returns on traditional investments.

As previously indicated, Vedanta shares traded ex-dividend four times following the start of FY2022-23.

Mining major Vedanta has given its shareholders a significant dividend yield of nearly 20% since April 2022 to till now. As the financial year 2023 is almost nearing its end, the company has so far announced four interim dividends for the shareholders in the current financial year amounting to a total of Rs 81 per share.

If we compare the total dividend the one the business paid out in the fiscal year 2022–2023, Vedanta’s annual dividend yield equals to 20%, which is higher than the returns on traditional investments like bank fixed deposits and public provident fund or employee’s provident fund.

Vedant declared its last and fourth interim dividend at Rs 12.5 per share at a face of Re 1 each on January 27. Earlier the Anil Agarwal promoted company had declared interim dividends of Rs 17.50 per share in November, Rs 19.50 per share in July and Rs 31.50 per share in May last year in FY2022-23.

Shares of the Mumbai-headquartered mining major closed at 0.33 percent down at Rs 313.25 per share on Friday, February 17. As per the current market price of the stock, the net dividend yield in this financial year amounts to more than 25%. Compared to the stock price in the beginning of the financial year in April 2022, when it was around Rs 405 per piece level, the annual dividend yield stands at 20%.

When compared to risk-free investment options like PPF (Public Provident Fund), Employees’ Provident Fund (EPF), and bank fixed deposit (FD) interest rates, the mining company’s stock has provided more than double returns.

In general, investment in long-term equity mutual funds yields returns of around 12-14% and now Vedanta shares have also surpassed the return on mutual fund investments.

PPF interest rates, which are paid on a quarterly basis, have stayed constant at 7.10% annually. Similar to this, the EPF interest rate has remained unchanged at 8.10% in FY23 while bank FD rates have increased upto 6.50% in FY2022-23.

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