The defence stocks have been in focus on growing India-Pak tension after the terror attacks in Pahalgam. The stocks are also in focus on the back of dividend announcements. Here are the top three defence stocks with the highest dividend yield that you may want to consider.
Three defence stocks with highest dividend yield
Hindustan Aeronautics
The company has given an annual dividend yield of 0.85%. The company has given an interim dividend of Rs 25 in Q3FY25, and the only dividend of FY25. The company is in the aerospace & defence sector. The largecap defence stock has a market capitalisation of Rs 3.08 lakh crore as of April 30. HDFC Flexi Cap Fund (Regular Plan) has invested the highest among mutual funds. It invested Rs 626.62 crore to acquire 1.5 million shares or 0.9% of the company. The foreign institutional investors hold a total of 12.3% of the company’s total shares, while the domestic institutional investors hold 8.2% shares.
Bharat Forge
Bharat Forge has given an annual dividend yield of 0.82%. The company’s last dividend payout was of Rs 2.5 per equity share in the third quarter of FY25. It was the only dividend company paid in the financial year 2024-25. Bharat Forge operates in the forgings sector. It is classified as a largecap, with a market capitalisation of Rs 54,126.80 crore as of April 30. Nippon India Growth Fund is the biggest institutional investor in the company with a 1.92% stake holding of 5.44 million shares, which it bought for Rs 636.49 crore. In Q3 FY25, the company reported a net profit of Rs 212.78 crore, a decline of 16.4% year-on-year.
Bharat Electronics
The newly included Nifty 50 Bharat Electronics has given an annual dividend yield of 0.75%. In FY25, the company announced an interim dividend of Rs 1.5 per equity share with an ex-dividend date of March 11. The company also operates in the aerospace and defence sector. Bharat Electronics’ total market capitalisation as of April 30 stands at Rs 2.32 lakh crore. Nippon India CPSE ETF is the biggest investor in the company. It bought a 17.33% stake or 21.65 crore shares for a price of Rs 6,522.85 crore. The DIIs have a total holding of 20.9% in the company, while the FIIs have 17.3%. In the past one month, the share price of BEL has risen 7.44%.