Multibagger stock: Standard Industries shares are one of the dividend stocks in the financial year 2022-23 that declared dividend to an extend that led to a dividend yield, which is much higher than Public Provident Fund (PPF) and bank fixed deposit (FD). This dividend stock has doubled shareholders money by generating around 100 per cent return in last one year. However, reward for shareholders of this penny stock doesn’t end here only. This multibagger penny stock has surged more than 200 per cent in post-Covid rebound in last one year.
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The dividend stock we are talking here is Standard Industries Ltd. This is one of those penny stocks that has delivered multibagger return to its shareholders who indulged in bottom fishing during Covid-19 sell off in early 2020. In the financial year 2022-23, this dividend stock declared dividend on two occasions or the multibagger penny stock traded ex-dividend twice in FY23. This multibagger stock traded ex-dividend for the first time on 30th May 2022 for the payment of ₹1.75 per share interim dividend. Similarly, the penny stock traded ex-dividend on 10th August 2022 for payment of ₹0.75 per share dividend payment.
Standard Industries dividend yield
This multibagger penny stock was available at ₹12.50 per share and the stock has given ₹2.50 dividend per share. If an investor had invested in this penny stock at the beginning of FY23, its dividend yield in FY23 would have been 20 per cent [( ₹2.50/ ₹12.50) x 100].
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Beats PPF, bank FD return
Comparing dividend yield of this multibagger penny stock with PPF interest rate and bank FD return in FY23, PPF interest rate remained unchanged at 7.10 per cent whereas bank FD return surged from around 5.50 per cent to around 7 per cent per annum. However, all these fixed investment options gave returns that is less than half of the dividend yield delivered by this small-cap multibagger penny stock.
