Dividend fund managers plug into power stocks as outlook improves

Heightened optimism stokes the fires of increased dividend payouts

The improving outlook for the power sector has caught the interest of dividend yield funds.

In the first four months of the current financial year (2023-24, or FY24), five of the six largest dividend yield funds have shown a notable increase in their exposure to stocks within the power sector. Some have even introduced new stocks to their portfolios.

While certain stocks in the sector have consistently offered high dividends, recent months have witnessed increased interest from mutual funds (MFs) due to the anticipation of accelerated power demand growth. This is attributed to the government’s focus on manufacturing and the