Featured Snippet Answer: REC Limited pays a dividend yield of approximately 5.0% to 5.6%, with a trailing 12-month dividend around Rs.22 per share, paid quarterly, and a strong 16% average annual dividend growth rate over the past decade.
Key Takeaways
- REC Limited’s dividend yield is approximately 5.0% to 5.6%, among the higher yields covered on this site.
- The trailing 12-month dividend totals roughly Rs.22 per share as of late July 2026.
- REC pays dividends quarterly, more frequently than most Indian dividend stocks.
- The dividend has grown at an average rate of 16% per year over the past 10 years, though payments have been volatile.
- REC is a systemically important non-banking financial company (NBFC) focused on financing India’s power sector infrastructure.
Why REC’s Yield and Growth Both Stand Out
REC Limited combines a relatively high current yield of 5.0% to 5.6% with a strong long-term dividend growth track record, averaging 16% per year over the past decade. This combination is uncommon: many high-yield PSU stocks show slower dividend growth, while faster-growing dividend payers often carry lower current yields, similar to the pattern seen with CAMS. REC’s ability to combine both stems from its role financing India’s power sector, a segment that has seen substantial government-backed investment growth over the past decade, feeding through to REC’s loan book and earnings.
Dividend History and Payment Pattern
| Metric | Value |
|---|---|
| Trailing 12-month dividend | ~Rs.22.00/share |
| Dividend yield range | 5.0% – 5.6% |
| Next dividend | Rs.1.55/share, ex-date 14 Aug 2026 |
| 10-year average dividend growth | +16% per year (volatile) |
| Payment frequency | Quarterly |
Source: REC Limited corporate actions via stockanalysis.com and Simply Wall St, as of 28 July 2026.
Why “Volatile” Growth Still Matters to Know
While REC’s 16% average annual dividend growth rate looks attractive, the qualifier “volatile” is important context. This means individual year-over-year changes have varied significantly rather than growing in a smooth, predictable line. Investors relying on REC for a steadily increasing income stream should look at multi-year trailing totals rather than expecting consistent quarter-over-quarter or year-over-year increases.
Common Mistakes Investors Make With REC
A common mistake is assuming REC’s quarterly payment schedule means each quarter’s dividend will be roughly equal. In practice, REC’s quarterly amounts have varied (for example, Rs.4.25 in one recent quarter against a Rs.1.55 upcoming payment), so investors should track cumulative trailing 12-month totals for a more accurate income picture rather than annualizing a single quarter’s payout.
Should You Hold REC for Dividend Income?
REC suits income investors seeking an above-average yield combined with a strong historical growth trend, while accepting that individual quarterly payments can vary meaningfully. Its fortunes are tied to India’s power sector financing needs and asset quality in its NBFC loan book.
REC vs Other PSU NBFC Dividend Payers
| Company | Approx. Yield | 10-Yr Avg Growth | Focus |
|---|---|---|---|
| REC Limited | 5.0% – 5.6% | +16%/year | Power sector financing |
| PFC | ~4-5% | Moderate | Power sector financing |
| IRFC | ~2.4% | Slow | Railway financing |
REC Key Dividend Dates
| Event | Date |
|---|---|
| Latest declared dividend | Rs.4.25/share, quarter ending Jun 2026 |
| Upcoming ex-date | 14 Aug 2026 |
| Upcoming amount | Rs.1.55/share |
Because REC pays quarterly, checking the exchange corporate action calendar each quarter is the most reliable way to stay current on upcoming payments, rather than relying on an annualized estimate.
Frequently Asked Questions
What is REC Limited’s current dividend yield?
REC’s dividend yield is approximately 5.0% to 5.6%, based on a trailing 12-month dividend of roughly Rs.22 per share.
How often does REC pay dividends?
REC pays dividends quarterly, more frequently than most Indian dividend-paying stocks.
How fast has REC’s dividend grown?
REC’s dividend has grown at an average rate of about 16% per year over the past 10 years, though individual year-over-year changes have been volatile.
What does REC Limited do?
REC Limited is a non-banking financial company (NBFC) that finances power sector infrastructure projects across India.
Are REC’s quarterly dividend payments consistent?
No. Quarterly amounts have varied meaningfully, so investors should track trailing 12-month totals rather than annualizing any single quarter’s payment.
Is REC a good stock for dividend income?
REC suits investors seeking an above-average current yield combined with strong historical dividend growth, while accepting quarter-to-quarter payment variability.
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