Hindustan Zinc dividend: The Vedanta subsidiary recently declared a fourth interim dividend of 26 rupees per share for the fiscal year 2022–2023.
The record date for the Hindustan Zinc dividend was set as March 29, 2023, following the declaration of this fourth interim dividend. This indicates that the dividend stock’s net dividend for FY23 was declared to be $75.50 per share, and its FY23 dividend yield was roughly 23.50%, which is significantly greater than the interest rates offered by PPF, EPF, and banks’ fixed deposit (FD) accounts.
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
BSE’s official website, bseindia.com, reports that Hindustan Zinc has four times issued interim dividends to its shareholders. On July 20, 2022, it began trading ex-dividend shares in preparation for paying its eligible shareholders a 21 interim dividend per equity share. Later, on November 23, 2022, it traded ex-dividend shares in anticipation of paying its eligible shareholders an interim dividend of 15.50 per share. The Vedanta subsidiary stock went ex-dividend on January 30, 2023, with an interim dividend payment of 13 per share.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.