Many investors are inclined towards creating a strong dividend portfolio as consistent payouts provide a cushion for the portfolio during market downturns. Generally large caps don’t provide very high payouts but one counter is currently trading at a lucrative yield - Indian Oil (NS:IOC) Corporation Limited.
It is an oil marketing company with a market capitalization of INR 2,45,554 crore. The company garnered a revenue of INR 7,81,740.6 crore in FY24, over which it was able to secure a record-high profit of INR 41,729.6 crore. This was 326.1% higher than the FY23 profit of INR 9,792.1 crore.
By December 2023, mutual funds had a holding of 1.75% which jumped to 2.38% by June 2024. Even FIIs increased their stake from 7.69% to 7.79% in a year, ending June 2024.
Image Source: InvestingPro+
On the dividend front which is the main attraction of this counter, the stock is currently trading at a lucrative yield of 8.6%. The trend of this yield can also be seen in the chart above to help investors time their entry better. When the stock price falls or the dividend per share (DPS) rises, this yield chart goes up, indicating a better time to go long on the counter.
Image Source: InvestingPro+
Apart from the yield, the consistency of payouts also matters when selecting a long-term dividend stock. As can be seen from the payout history, the management has never skipped a single year in the last 10, making it a no-brainer dividend stock.
Image Source: InvestingPro+
Lastly, those who do not want to do much of research can rely on ProTips which highlights all the necessary details about the stock. In this case, it also tells the company pays high dividends to shareholders and has maintained payments for the last 24 consecutive years.
Read More: Exchange Revises Net Worth Requirements for SME Market Makers
X (formerly, Twitter) - Aayush Khanna
LinkedIn - Aayush Khanna