Coal India fall likely to continue despite high dividend payouts

ET Intelligence Group: Investors seeking only high dividend yields should look at Coal IndiaNSE 1.03 %, the country’s largest miner of the solid fossil fuel. Despite a good dividend payout history and robust cash reserves, the stock has seen a consistent decline over the years, with increasing investor interest in energy sources that emit less carbon. That trend could continue.

“The surge in interest in renewables has already started impacting conventional sources,” said Rahul Jain, leading metals and mining analyst with Systematix Research. “There is growing consensus among leading investors globally that we are moving irreversibly toward a low-carbon economy. Coal is the most carbon-intensive fossil fuel, responsible for about 46 per cent of global carbon emissions.”