HAL vs BEL: Which Defence PSU is the Better Dividend Stock? India’s defence sector has been booming, and two public sector giants—Hindustan Aeronautics Limited (HAL) and Bharat Electronics Limited (BEL), have been at the forefront of this growth. But for investors, the key question remains: Which of these stocks is better for dividend income?
Dividend Payout: Who Pays More?
HAL has declared an interim dividend of ₹25 per share for the financial year 2024-25. At its current share price of ₹3,450, this gives a dividend yield of about 1%. Meanwhile, BEL recently announced an interim dividend of ₹1.50 per share, with a record date of March 11, 2025. With a share price of ₹277, BEL’s yield stands at roughly 0.80%.
While HAL offers a slightly higher yield, BEL has a long history of consistent dividend payments, which could appeal to long-term investors.
Dividend History: Stability vs Growth
HAL has been consistently paying dividends, with a total payout of ₹35 per share in the previous financial year. However, BEL has an even longer history, having declared 49 dividends since 2003.
If you’re looking for a company with a long track record of paying dividends, BEL seems to be the safer bet. But if you want higher returns and are willing to accept some volatility, HAL might be the better option.
Stock Performance: Which One is Winning?
Over the last year, HAL’s stock has risen by just 4%, but zoom out a bit, and the numbers are staggering. In the last three years, HAL’s stock has skyrocketed by 421%, and over five years, it has delivered over 1,000% returns!
BEL, on the other hand, has seen a steady rise. In the past year, its stock price has increased by about 29%. While it hasn’t seen the explosive growth of HAL, it remains a solid choice for stable investors.
Which One Should You Pick?
Both HAL and BEL are strong players in India’s defence sector and offer decent dividends. If you are looking for a stock with a higher dividend yield and massive growth potential, HAL could be your pick. However, if you prefer a company with a long, stable dividend-paying history, BEL might be a better fit.
No matter which stock you choose, it’s always wise to do your own research and consider your financial goals before investing.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always consult a professional before making investment decisions.
