Shares of Coal India reached their highest levels in nearly five years due to expectations of an all-time high dividend for the current fiscal year. This surge is attributed to robust sales volumes and improved pricing in e-auctions. The country's largest coal miner saw its shares close more than 5 per cent higher at 303.25 rupees, making them the top performers on the Nifty 50, which itself ended the day with nearly a 1 per cent gain. Over the past three months, Coal India's shares have risen by almost a third, and experts anticipate further upward momentum in the near term. Analysts Ashish Kejriwal and Jyoti Singh of Nuvama Institutional Equities project a dividend payout of 30 rupees for 2023-24, assisted by an expected generation of free cash flow totalling around Rs 220 billion during the year. The dividend payout could be interim and is likely to be distributed between October and March. According to Atul Chaturvedi of Antique Stock Broking, on technical charts, Coal India's shares are poised to rise to around 340 rupees in the near term. He recommends buying the stock at current levels and during corrections to around 290 rupees, with a timeframe of approximately one month. During the April to September period, the state-owned miner increased its production by more than 11 per cent, with sales volumes rising by nearly 9 per cent year-on-year. Notably, the company's supplies to the power sector have also increased by more than 3 per cent. Analysts at Nuvama expect Coal India's volume to grow at a 6 per cent compound annual growth rate (CAGR) to reach 827 million tonnes over the period from FY23 to FY26. Furthermore, coal prices are expected to remain firm due to the diversion of supplies from non-power to the power sector and recent price increases in international coal markets.