Indian Oil shares target, 8.90% Dividend Yield, What to expect in future

Indian Oil Corporation (IOCL) shares are currently trading below Rs 150 due to significant market selling. As a leading dividend-paying stock, Indian Oil offers a dividend yield of nearly 9%, the highest among public sector undertakings (PSUs). In Thursday's trading session, Indian Oil shares closed lower at Rs 134.80.

The stock has seen a decline of 31% from its 52-week high of Rs 196.80, reached on February 8, 2024. According to analytical data, PSU stocks, particularly those of oil marketing companies (OMCs) like IOCL, HPCL, and BPCL, have already experienced a correction phase, with their share prices falling considerably from record highs.

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Indian Oil is a top dividend-paying stock. At present, its dividend yield is 8.90 per stock. As per the BSE website, Indian Oil has rewarded its investors once in 202 so far by paying a dividend of Rs 7 per stock. In 2023, the high dividend-yielding PSU company paid a Rs 5 dividend in November and a Rs 3 dividend in July.

In 2022, Indian Oil bonus share was declared by the PSU in the ratio of 1:1 (one for two) while the dividend was paid twice, aggregating to Rs 6.40 on each stock.

In 2021 and 2020, Indian Oil paid a dividend of 17 and Rs 4.25, respectively. Indian Oil's share price has delivered a return of 36 percent in the last year and 94 percent in two years with a market cap of Rs 1,90,354.29 core.

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