Coal India Ltd. announced an interim dividend of Rs 15 apiece, translating into a dividend yield of 6% at the current market price of Rs 249.50.
The company has fixed Nov. 16 as the record date and will turn ex-dividend on Nov. 15.
Coal India, so far in the current fiscal, has announced a total dividend of Rs 18, the highest in six years. To take advantage of dividend yield, shares need to be purchased before the cum-dividend date, which is one day prior to the ex-date and two days before the record date.
Coal India will distribute the interim dividend by Dec. 6. The Government of India, owing the majority stake, will receive Rs 6,100 crore Life Insurance Corporation of India will get Rs 1,000 crore as dividend payout.
Shares of Coal India have surged 68% so far in 2022, but are trading at a discount of 38% from its 10-year average.