TWO PSU STOCKS WITH STRONG DIVIDEND YIELD TO ADD TO YOUR WATCHLIST

Everyone loves a solid dividend payout because it’s a win for both sides. Shareholders get that nice, steady flow of extra cash without any additional effort, and it’s a very strong signal that the company’s doing good financially. On the flip side, when businesses keep giving out dividends consistently, it shows they’re confident about making money down the road and they’re serious about keeping their investors happy. Below are two such PSU stocks which have given excellent dividend yields over the past years:

- this is a Maharatna company under the Ministry of Coal, Government of India with headquarters at Kolkata, West Bengal. Having a market cap of Rs 2,37,200 crore, this company is the single largest coal producing company in the world and one of the largest corporate employers. The company has a current dividend yield of 7.00%, which is the highest when compared to industry peers. The industry median dividend yield is just 3.60%. In simple words, it means if the share price of the company is Rs 100, then Rs 7 is the dividend the shareholder receives for each share owned. Coal India has also maintained a strong dividend payout ratio of 46%. - this is a Navaratna company under the Ministry of Mines, Government of India involved in manufacturing and selling of Alumina and Aluminium. With a market cap of Rs 34,529 crore, it is one of the largest integrated Bauxite-Alumina-Aluminium-Power Complex in India and one of the largest integrated primary producers of aluminium in Asia. The company has a current dividend yield of 4.30%, which is the highest when compared to average industry dividend yield of just 0.11%.