24 stocks with high dividend and low PE combo

The Indian stock market is going through a rough patch, with the bears dominating the bulls. Since the beginning of 2011, Sensex has fallen over 14%, not sparing the midcaps or smallcaps. BSE Midcap and Smallcap indices fell more than 16% and 19% respectively during the same period.
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Home » News » Markets » Market Edge

Jun 25, 2011, 03.00 PM | Source: Moneycontrol.com

24 stocks with high dividend and low PE combo

The Indian stock market is going through a rough patch, with the bears dominating the bulls. Since the beginning of 2011, Sensex has fallen over 14%, not sparing the midcaps or smallcaps. BSE Midcap and Smallcap indices fell more than 16% and 19% respectively during the same period.

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24 stocks with high dividend and low PE combo

The Indian stock market is going through a rough patch, with the bears dominating the bulls. Since the beginning of 2011, Sensex has fallen over 14%, not sparing the midcaps or smallcaps. BSE Midcap and Smallcap indices fell more than 16% and 19% respectively during the same period.

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24 stocks with high dividend and low PE combo
The Indian stock market is going through a rough patch, with the bears extensively dominating the bulls. Since the beginning of 2011, Sensex has fallen over 14%, not sparing the midcaps or smallcaps. BSE Midcap and Smallcap indices fell more than 16% and 19% respectively during the same period.

The slide in the market has been due to higher inflation, hike in interest rates, disappointing IIP numbers and Mauritius tax treaty and several other reasons. But investors are using this decline too to their advantage. Typically, investors are interested in valuable stocks in this kind of fall and adopt a 'buy on dips' strategy. Thus, when the market bounces back investors are hoping to make maximum RoE (return on investment) in a short period of time.

In this type of market we can take into consideration stocks that declare higher dividends, and if the PE is less than or equal to 5, then valuation wise, these stocks may have higher growth rate.

Below is a list of stocks (with marketcap above Rs 250 crore) with high dividend yield but low P/E. Dividend yield is greater than or equal to 4% and P/E less than or equal to 10. (As on June 22, 2011)

Company

Mkt Cap (Rs Cr) 

P/E

Dividend Yield%

Aarti Inds .

354.83

5.31

5.31

Andhra Bank

7224.18

5.70

4.27

Bajaj Holdings

8269.40

8.27

4.71

Balmer Lawrie

927.80

7.66

4.00

C P C L

3277.42

6.41

5.49

D C Holdings

1562.95

9.62

4.67

Electrost.Cast.

944.45

6.21

4.32

GHCL

373.07

3.19

5.29

HCL Infosystems

1944.80

8.08

8.52

HEG

1020.45

7.92

4.21

Hyd.Industries

276.24

5.73

4.34

Indo Rama Synth.

583.79

4.23

5.09

JK Paper

354.02

3.33

4.32

K P R Mill Ltd

443.49

6.22

4.72

Kirl. Ferrous

363.85

7.46

5.54

Kothari Products

284.92

4.62

4.67

Mangalam Cement

297.12

7.77

5.44

Nava Bharat Vent

1569.37

5.13

4.12

Navin Fluo.Intl.

277.18

3.60

5.34

NIIT Tech .

1030.76

8.55

4.06

PSL

371.01

4.89

5.74

Sasken Comm.Tec.

344.43

3.85

4.77

Sonata Software

407.65

6.57

5.04

SRF

1671.92

3.60

4.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: Capitaline

Note: The stocks mentioned above may have benefitted from other income or extraordinary gains.  The trend may or may not continue for coming years.

Disclaimer: The story is purely intended to reveal interesting statistics. Moneycontrol sources all price information from BSE/NSE, database from Capitaline and company information from Dion Solutions. Moneycontrol is not responsible for inaccuracy/non-updation of data. There is no intention whatsoever to arrive at any conclusion or recommend any stocks or sectors. Please consult your financial advisor before taking any investing decisions.

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