Vedanta declared a total dividend of Rs 10,974 crore in the first half of the current fiscal year. In comparison, during the same time, the company posted a net profit of 857 crore.
Vedanta Ltd., controlled by billionaire Anil Agarwal, is one of the world’s companies with the highest dividend yield. Since the fiscal year 2023, the firm has paid out almost $6 billion, or 50,000 crore, in dividends. The mining and metals company ranks fourth among worldwide names, including Hapag-Lloyd AG and A.P. Moller – Maersk A/S, with a 12-month dividend yield of 26.2%.
According to Bloomberg data, another Indian name on this list is Vedanta’s subsidiary Hindustan Zinc, which ranks ninth with a 12-month dividend yield of 16.7%. Hindustan Zinc is 64.92% owned by Vedanta Ltd. Surprisingly, container transport corporations such as Hapag-Lloyd AG, A.P. Moller-Maersk A/S, and Cosco Transport Holdings Co. occupy the top three positions on this list. Despite plummeting profitability, these three corporations have given $22 billion in dividends to stockholders over the last year.
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This article explains why the shipping industry has recently received attention. Vedanta’s dividend distribution in fiscal year 2023 was 37,758 crore, which was 3.6 times its full-year net profit. The business issued its second interim dividend for fiscal year 2024 on Monday, at Rs. 11 per share, for a total payout of Rs. 4,089 crore.
With this statement, Vedanta’s total dividend declared in the first half of the current fiscal year amounted to 10,974 crore. In comparison, during the same time, the company posted a net profit of 857 crore. The mining company owned by Anil Agarwal reported a net loss in the third quarter. Vedanta announced its first interim dividend for the fiscal year, valued at $18.5 per share, in May. Vedanta had cash and equivalents worth 15,702 crore as of September 2023.
Vedanta’s increased dividend payout comes as its UK-based parent Vedanta Resources faces bond repayments of $3.2 billion over the next two years. At the end of September 2023, the parent owned 63.71% of Vedanta, with nearly all of its holdings committed.The increasing dividend payout, along with dropping stock prices, has improved yields for all of these corporations. While Vedanta shares have down 15% so far in 2023, Hapag-Lloyd AG and A.P. Moller – Maersk have fallen 26.5% and 8.8%, respectively, during the same period.
| Company | Share Price Returns In 2023 |
| Hapag-Lloyd AG | -26.5% |
| A.P. Moller – Maersk A/S | -8.8% |
| Cosco Shipping Holdings Co | -4.1% |
| Vedanta | -15% |
| Ecopetrol SA | -3.3% |
| Yankuang Energy Group Co | -2% |
| Swire Pacific | 4.3% |
| Hindustan Zinc | -3% |
Dividend yield is determined for corporations by adding the total dividend per share distributed over the previous 12 months and dividing it by the current share price. This research covered companies with a market capitalization of at least $10 billion.
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