Coal India Dividend History: Yield, Payout Trends and Long-Term Analysis

Coal India Limited is one of India’s most reliable dividend-paying PSU stocks, widely tracked by income-focused investors, long-term value investors, and dividend reinvestment strategies. Its dividend payouts have aligned with coal price cycles, earnings visibility, and capital allocation priorities over time.

This analysis of Coal India dividend history uses data from FY11 to FY26 to evaluate dividend consistency, dividend yield history, payout sustainability, and sensitivity to entry price. The structured dividend record helps investors assess dividend safety, compare payouts across commodity cycles, and determine whether Coal India remains a dependable income stock in FY26 and beyond.

Table of Contents:

1. Coal India Dividend History Overview
2. Annual Dividend Per Share Breakdown (FY11-FY26)
3. Coal India Dividend Payment Pattern and Frequency
4. Coal India Dividend Yield History and Entry Price Impact
5. Dividend Growth Rate and CAGR Analysis
6. Dividend Payout Ratio and Sustainability
7. Long-Term Dividend Income by Investor Cohort
8. Ex-Dividend Dates and Holding Strategy
9. Cash Flow Strength and Dividend Safety
10. Peer Comparison of Dividend Yields
11. Dividend Reinvestment Strategy Impact
12. Final Verdict on Coal India Dividends
13. FAQs on Coal India Dividend History

Coal India Dividend History Overview

Coal India has one of the longest and most aggressive dividend paying history of Coal India among Indian PSU stocks.

Key dividend facts

• Dividend yield is consistently among the highest in large-cap PSUs

• Average annual dividend of ₹27.61 per share across peak cycles

• Dividend CAGR of 12.84% between FY12 and FY25

• Payout ratios ranging from 30% to over 300% during peak years

• Strong balance sheet and cash reserves supporting payouts

This makes coal india dividend history particularly relevant for investors seeking predictable income rather than short-term price appreciation.

Annual Dividend Per Share Breakdown (FY11-FY26)

Annual Dividend Per Share Summary

What this shows

• FY14 remains the peak year due to special dividends

• FY23 and FY24 reflect strong post-COVID commodity pricing

• FY25 marks dividend normalisation rather than stress

• FY26 indicates stabilisation at sustainable levels

This table forms the backbone of coal india share dividend history analysis.

Coal India Dividend Payment Pattern and Frequency

Coal India does not follow a fixed quarterly model. Instead, payouts vary with cash flows and policy directives.

Dividend Payment Pattern by Period

Key insight

• Average of 2.1 dividend payments per year

• A preference for interim dividends allows faster cash distribution

• Investors receive income at least twice a year in most cycles

This pattern strengthens the reliability of Coal India dividend details for income planning.

Coal India Dividend Yield History and Entry Price Impact

Dividend yield depends more on entry price than on dividend size.

Historical Dividend Yield at Different Price Levels

Yield insights

• Highest yields occurred during market stress periods

• FY20-FY22 offered exceptional income opportunities

• Current yield reflects premium valuations post recovery

This confirms that coal india dividend yield history is highly cyclical.

Dividend Growth Rate and CAGR Analysis

Coal India's dividend growth is not linear. It follows commodity cycles.

Dividend CAGR Across Periods

Interpretation

• Long-term baseline dividend growth of 9-10%

• Short-term drops reflect normalisation, not deterioration

• Exceptional years distort long-range CAGR figures

This reinforces why coal india dividend history must be analysed over full cycles.

Dividend Payout Ratio and Sustainability

Coal India has historically paid out more than its earnings during strong years.

Dividend Payout Ratio Snapshot

Sustainability view

• Earlier excess payouts funded via reserves

• Recent years show disciplined payout behaviour

• Current payout ratio leaves room for growth and capex

• From a safety perspective, the dividend paying history of Coal India now appears more conservative and sustainable.

Long-Term Dividend Income by Investor Cohort

Cumulative Dividend Received Per Share

Key takeaway

• Entry price determines dividend returns

• Downcycle investors earn multi-bagger income returns

• Peak-cycle investors need longer holding periods

To understand how Coal India’s dividend history translates into shareholder returns, analyse the Coal India share price, long-term charts, and valuation indicators.

Ex-Dividend Dates and Holding Strategy

Typical dividend calendar

• Interim 1: August to November

• Interim 2: January to February

• Final dividend: August

Practical holding guidance

• Hold shares before the ex-dividend date to qualify

• Payment is usually within 15-30 days

• Ideal holding period is 3-4 years to capture full cycles

Cash Flow Strength and Dividend Safety

Coal India's dividends are backed by operating cash flows and reserves.

Cash flow highlights

• Strong free cash flow in FY22 and FY23

• Normalised but positive FCF in FY24 and FY25

• Cash reserves exceeding ₹92,000 crore

This underpins long-term confidence in coal india dividend history sustainability.

Peer Comparison of Dividend Yields

Coal India remains among the most consistent large-cap dividend payers.

To understand how dividend-paying coal PSUs are valued differently by the market, analyse the Bharat Coking Coal share price, long-term charts, and key valuation indicators.

Dividend Reinvestment Strategy Impact

Dividend reinvestment significantly enhances long-term returns.

10-Year Illustration

• Without reinvestment: ₹11,642 value

• With reinvestment: ₹12,217 value

• Additional gain from compounding: 5%

Long-term investors benefit meaningfully by reinvesting dividends.

Final Verdict on Coal India Dividend History

Coal India's dividend profile is best suited for:

• Income-focused long-term investors

• Investors are comfortable with commodity cycles

• Portfolios seeking PSU stability and cash returns

The Coal India dividend history shows strong income potential when bought at reasonable valuations and held patiently.

FAQs on Coal India Dividend History

1. Is Coal India a consistent dividend-paying stock
Yes. Coal India has paid dividends almost every year since listing, making its dividend history one of the strongest among PSUs.

2. How often does Coal India pay dividends
Typically, two to three times a year, depending on cash flow and board decisions.

3. What is the average dividend yield of Coal India
Historically, around 8.9% with higher yields during market downturns.

4. Is Coal India dividend sustainable in the long term
Current payout ratios and cash flows suggest high sustainability.

5. Does Coal India pay special dividends
Yes, during periods of exceptional profitability, such as FY14 and FY23.