Power Finance Corporation (PFC), owned by the Government of India, is one such company listed in the stock market. It has issued a dividend of about Rs 10 on each share to its investors in 2022-23. Explain that companies issue some part of their profits, i.e. dividends, as additional profit to their investors every year.
Apart from the increase in the price of shares in the market, the dividend is also a source of income for investors. Some companies in the market issue more returns to their investors in the form of dividends than the interest they get on bank FDs and Public Provident Funds (PPF).
About 8.3 per cent return is given on each share
The price of one Power Finance Corporation (PFC) share was around Rs 120 at the beginning of the financial year 2022-23. At the same time, the company has given its investors a dividend of about Rs 10 on each share. Accordingly, the company has given a return of about 8.3 per cent to its investors on every share only in the form of dividends. If seen, this bank is more than the interest received on FD and PPF. In this financial year, the interest rate of PPF was 7.10 per cent, while the interest rate on FDs of different banks was between 5.50 to 7 per cent.
30 per cent increase in the price of shares
In the last year, the price of shares of Power Finance Corporation Company has also increased by about 30 per cent. If we combine the returns received on the company’s shares with the dividend, then this company has given its investors a return of about 38 per cent in a year. That is, its investors have got double the benefit this year. Let us tell you that the shares of Power Finance Corporation closed at Rs 156.55 per share on NSE on Thursday.
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