Rewarding Investors: From Narmada Gelatines to ONGC, here's a list of top dividend-yielding stocks in FY23

When it comes to investing in the stock market, there are generally two main objectives for investors. The first is capital appreciation, where investors aim to profit from the increase in the value of their stocks over time. This is achieved by buying stocks at a lower price and selling them at a higher price.

The second objective is to generate a steady income from investments. In this case, investors look for companies that distribute a portion of their profits to shareholders in the form of dividends.

By investing in dividend-yielding stocks, an investor enjoys the benefits of dividend income along with capital appreciation. In the financial year 2022-2023 (FY23), several large and mid-cap stocks rewarded their shareholders with handsome dividend payouts.

While a company may announce a substantial dividend amount in terms of value, it is important to consider the dividend yield as a key metric. The dividend yield provides a clearer picture of the return an investor can expect to receive on their investment.

The dividend yield is calculated by dividing the annual dividend per share by the stock's current market price. A higher dividend yield implies a greater return on investment, making it a crucial metric for investors to evaluate the attractiveness of a stock.

In this article, we will look at the top dividend-yielding stocks in FY23.

Narmada Gelatines, a company specializing in the production and sale of Ossein and Gelatine, stood at the top of the list in FY23. The current market price of the stock is around 296.40 apiece, and it has announced a total dividend of ₹110 per equity share in FY23. This translates to an impressive dividend yield of 37.11%.

Over the past five years, the company has consistently allocated approximately 50% of its earnings towards dividend payments. In addition, the stock gained nearly 50% in the last one year period, climbing from ₹204 apiece to ₹296.40.

The very next on the list was TV Today Network, which is engaged in broadcasting television news channels, radio stations, and newspaper publishing in India. The company announced an equity dividend of ₹70.00 per equity share for the fiscal year ending on March 31, 2023. With the current share price at ₹189.70, this translates to an impressive dividend yield of 36.90%.

The stock, however, lost nearly 27.50% of its value over the last one year and in the last two years, it plummeted by 47%.

Hindustan Zinc declared a dividend payout of ₹75.50 per equity share in FY23, which represents a dividend yield of 24.71%. Notably, the company maintained a consistent dividend payment throughout FY23, with dividends being declared for each quarter.

Vedanta was another stock that rewarded its shareholders with regular dividend payouts. The country's largest aluminium producer declared a dividend of ₹70 per equity share, translating into a dividend yield of 23.52%.

During the past 11 months, the stock has delivered a return of 39%. For instance, if an investor had purchased the stock at ₹214 apiece during this period, they would have enjoyed a dividend yield of 32.17% based on the dividend amount of ₹70 (dividend per share) divided by the purchase price multiplied by 100.

Styrenix Performance Materials, a company specializing in the manufacturing, trading, and sale of "Engineering Thermoplastics," announced a dividend of ₹185 per equity share for FY23. With the current stock price of ₹848.10, the dividend yield based on the payouts in FY23 stands at an impressive 21.81%.

Note: This story is for informational purposes only. Please seek the advice of a financial advisor.