1:3 Impact of Bonus Shares: Dividend-Paying Stocks Deliver 34% Return in 2022

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1:3 Impact of Bonus Shares: Dividend-Paying Stocks Deliver 34% Return in 2022


REC Ltd, a Mahalatna Central Public Sector Business, is a subsidiary of Power Finance Corporation Limited (PFCL) and is one of the dividend paying shares listed on Dalal Street. For 2022, this national NBFC has declared his two interim dividends. ¥6 shares per share ¥gave a final dividend of 5 per share, whereas ¥4.80 per share.This means that in 2022 PSU shares will pay three dividends and the total dividend for the previous year will be ¥15.80 per share ( ¥6+ ¥5+ ¥4.80).

REC dividend history

REC Ltd pays first interim dividend ¥It traded ex-dividend on February 15, 2022 at 6 per share on February 2022. ¥At 4.80 per share, this trades ex-dividend ¥Dividend of 4.80 per share on July 12, 2022. Maharatna PSU has again announced an interim dividend. ¥At 5 per share, it traded at the same ex-dividend on November 7, 2022.Therefore, the PSU NBFC is ¥Dividend of 15.80 per share to shareholders Who continued to invest in the script throughout 2022.

2022 REC Dividend Yield

At the beginning of 2022, REC’s share price was quoting about ¥100 (closing time ¥On December 31, 2021, it was at 100.35, but on December 30, 2022 (the last trading day of the year gone by), it closed at 116.50, up to 16.50%. However, add in the stock dividend yield for 2022, and it’s about 16%. ¥Dividend of 15.80 on 2022 start year price ¥100 per share.

Therefore, REC’s stock and dividend yields are both around 16%, giving shareholders an annualized yield of around 32% in 2022.

Impact of bonus share

However, for the information of our readers, REC Ltd has also announced bonus shares for 2022. In 2022 he declared bonus shares at a ratio of 1:3 and exchanged the same bonus shares on 17 August 2022. After issuing bonus shares in August 2022, in early 2022 their holding was reduced to one-third of his and 4/3 times his original holding. ¥6.67 [ 5 x (4/3)] November 2022 interim dividend.

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Therefore, the total dividends received by REC shareholders holding shares in 2022 will be ¥17.47 ( ¥6+ ¥4.8+ ¥6.67) per share. So, comparing his REC stock price in early 2022, REC’s annual dividend yield is about 17.50%.

Add a stock yield of 16.50% and Net The REC yield in 2022 is 34% (stock yield 16.50 + dividend yield 17.50).


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