New Delhi, Dec. 17 -- Public sector undertakings (PSUs) have long been known for offering strong dividends to investors, which increases their appeal for retail investors. Apart from offering an additional income in the form of consistent dividends, over the last few years, the PSU stocks have also delivered solid returns, thus offering dual benefits to investors.

The BSE PSU index, an index of PSU stocks, has surged 240% in the last five years amid improving financial performance, government reforms and policy support, and attractive valuations relative to private peers.

What's better? The dividend offered by the majority of top PSU stocks is either higher than or equivalent to the returns of bank fixed deposits. According to a report ...