In the past five months, the Indian stock markets have fallen drastically due to poor quarterly earnings, geopolitical factors, among other things.
With Trump’s tariff imposition and uncertainty in the market, the stock markets could fall some more.
However, during such uncertain times, like always, investors are looking out for dividend stocks for consistent returns.
Dividend investing is a proven strategy that investors rely on. Several studies suggest that dividend-paying stocks generate higher returns in the long term compared to non-dividend-paying stocks.
Usually, dividend stocks pay regular dividends and increase them consistently every year.
Such stocks, also popularly known as ‘Dividend Aristocrats’, are considered stable, fundamentally strong, and have good growth prospects.
In today’s article we are comparing two such stocks – Vedanta and Hindustan Zinc – to see which is a better dividend stock.
Business Overview Hindustan Zinc
Incorporated in 1966, Hindustan Zinc is the world’s 2nd largest integrated zinc producer and 3rd largest silver producer.
It is a subsidiary of Vedanta Limited, and is recognised as a industrial and market leader of zinc, silver and lead.
The company is self-sufficient with respect to power and has captive thermal power plants.
It has achieved backward integration through power production and possession of low-cost, high-grade zinc reserves.
Hindustan Zinc has a manufacturing capacity to produce 1.12 MT of metals, 16.52 MT of ore, and 603.1 megawatts (MW) of captive power through renewable and non-renewable resources.
It runs an integrated zinc-lead-silver operation with zinc, leand and silver smelting capacity of 913,000 TPA (tonnes per annum), 210,000 TPA and 800 TPA, respectively.
It has operations in India and earns the majority of its revenue (75%) from India and the rest 25% of its revenue from exports.
Vedanta
Vedanta is a diversified natural resource company engaged in exploring, extracting, and processing minerals and oil and gas.
It is engaged in the exploration, production, and sale of zinc, lead, silver, copper, aluminium, iron ore, nickel, and oil and gas.
The company is the sole producer of nickel in India, one of the largest private sector crude oil producers, and one of the largest iron ore miner in India,
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