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Dividend yielding MFs back in limelight: Top mid-cap and small-cap stocks they hold

The category delivered about 11 percent in the last one year, while the Nifty 500 TRI generated 6 percent. Here's a list of top mid-cap and small-cap stocks held by the eight dividend yield schemes as of May 31

June 19, 2022 / 09:12 AM IST
Dividend yielding mutual funds have become one of the top categories among equity funds on generating higher returns over the last one-year time frame. The category delivered about 11 percent in the last one year, while the Nifty 500 TRI generated 6 percent. Mittul Kalawadia, fund manager of ICICI Prudential Dividend Yield Fund, says, “Generally, at the market bottom dividend yield becomes attractive for a lot of stocks. As the market recovers there is value unlocking taking place. At the same time, there is also an economic recovery playing out leading to an earnings growth for reasonably priced stocks. This leads to stocks getting rerated. So, there is twin benefits on earnings front and rerating which has led to the recent outperformance”. If it is a bearish market led by recession, there can be volatility in the initial phase. On the other hand, if it is a market correction with sound economic parameters, then this strategy is a good defensive bet on a relative basis, Kalawadia adds. Here are the top mid-cap and small-cap stocks held by the eight dividend yield schemes as of May 31, 2022. Source: ACEMF.
Dividend yielding mutual funds have become one of the top categories among equity funds on generating higher returns over the last one-year time frame. The category delivered about 11 percent in the last one year, while the Nifty 500 TRI generated 6 percent. Mittul Kalawadia, fund manager of ICICI Prudential Dividend Yield Fund, says, “Generally, at the market bottom dividend yield becomes attractive for a lot of stocks. As the market recovers there is value unlocking taking place. At the same time, there is also an economic recovery playing out leading to an earnings growth for reasonably priced stocks. This leads to stocks getting rerated. So, there is twin benefits on earnings front and rerating which has led to the recent outperformance”. If it is a bearish market led by recession, there can be volatility in the initial phase. On the other hand, if it is a market correction with sound economic parameters, then this strategy is a good defensive bet on a relative basis, Kalawadia adds. Here are the top mid-cap and small-cap stocks held by the eight dividend yield schemes as of May 31, 2022. Source: ACEMF.
 ICICI Securities : There were six out of eight dividend yield schemes - Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Sundaram Dividend Yield, Tata Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund holding ICICI Securities in their portfolios. Stock brokers Axis Direct and Motilal Oswal gave 'buy' recommendations on the stock (based on the reports released over the last three months).
ICICI Securities: There were six out of eight dividend yield schemes - Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Sundaram Dividend Yield, Tata Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund holding ICICI Securities in their portfolios. Stock brokers Axis Direct and Motilal Oswal gave 'buy' recommendations on the stock (based on the reports released over the last three months).
 Hindustan Petroleum Corporation : Five dividend yield schemes such as HDFC Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund held exposure to the stock. Meanwhile, there were 100 other equity schemes, too, that held the stock in their portfolio. Stock broker HDFC securities gave 'accumulate' recommendations on the stock (based on the reports released over the last three months).
Hindustan Petroleum Corporation: Five dividend yield schemes such as HDFC Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund held exposure to the stock. Meanwhile, there were 100 other equity schemes, too, that held the stock in their portfolio. Stock broker HDFC securities gave 'accumulate' recommendations on the stock (based on the reports released over the last three months).
 Cummins India : Stock of the manufacturer of diesel and alternative fuel engines has been preferred by Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Tata Dividend Yield and UTI Dividend Yield Fund. Stock broker HDFC securities gave 'buy' recommendations on the stock.
Cummins India: Stock of the manufacturer of diesel and alternative fuel engines has been preferred by Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Tata Dividend Yield and UTI Dividend Yield Fund. Stock broker HDFC securities gave 'buy' recommendations on the stock.
 Sanofi India : Aditya Birla SL Dividend Yield, Sundaram Dividend Yield, Tata Dividend Yield and UTI Dividend Yield Fund held the stock of this mid-size pharma player in their portfolio. Another 49 equity schemes also invested in the stock.
Sanofi India: Aditya Birla SL Dividend Yield, Sundaram Dividend Yield, Tata Dividend Yield and UTI Dividend Yield Fund held the stock of this mid-size pharma player in their portfolio. Another 49 equity schemes also invested in the stock.
Hindustan Aeronautics: Three dividend yield schemes Aditya Birla SL Dividend Yield, HDFC Dividend Yield and ICICI Pru Dividend Yield Equity held the stock in their portfolio. Stock broker ICICI securities gave 'buy' recommendations on the stock.
Hindustan Aeronautics: Three dividend yield schemes Aditya Birla SL Dividend Yield, HDFC Dividend Yield and ICICI Pru Dividend Yield Equity held the stock in their portfolio. Stock broker ICICI securities gave 'buy' recommendations on the stock.
 NHPC : Stock of this electric utilities company has been held by the dividend yield schemes such as HDFC Dividend Yield, IDBI Dividend Yield and Templeton India Equity Income Fund. Another 25 equity schemes also invested in the stock.
NHPC: Stock of this electric utilities company has been held by the dividend yield schemes such as HDFC Dividend Yield, IDBI Dividend Yield and Templeton India Equity Income Fund. Another 25 equity schemes also invested in the stock.
 Tube Investments of India : Two dividend yield schemes HDFC Dividend Yield and IDBI Dividend Yield Fund held the stock in their portfolio. There were 69 other equity schemes had invested in the stock as of May 2022.
Tube Investments of India: Two dividend yield schemes HDFC Dividend Yield and IDBI Dividend Yield Fund held the stock in their portfolio. There were 69 other equity schemes had invested in the stock as of May 2022.
 CESC : This small-cap stock has been the preferred holdings of five of the dividend yield schemes namely Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Tata Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund. Another 48 equity schemes were also invested in the stock.
CESC: This small-cap stock has been the preferred holdings of five of the dividend yield schemes namely Aditya Birla SL Dividend Yield, HDFC Dividend Yield, Tata Dividend Yield, Templeton India Equity Income and UTI Dividend Yield Fund. Another 48 equity schemes were also invested in the stock.
 Multi Commodity Exchange of India : This small-cap stock has been held by Aditya Birla SL Dividend Yield, IDBI Dividend Yield, Sundaram Dividend Yield and Tata Dividend Yield Fund held. There were 47 other equity schemes had invested in the stock as of May 2022.
Multi Commodity Exchange of India: This small-cap stock has been held by Aditya Birla SL Dividend Yield, IDBI Dividend Yield, Sundaram Dividend Yield and Tata Dividend Yield Fund held. There were 47 other equity schemes had invested in the stock as of May 2022.
Sonata Software: Stock of this smallcap IT player were preferred by the dividend yield schemes like Aditya Birla SL Dividend Yield, HDFC Dividend Yield and ICICI Pru Dividend Yield Equity Fund as of May 2022.
Sonata Software: The stock of this small-cap IT player were preferred by the dividend yield schemes like Aditya Birla SL Dividend Yield, HDFC Dividend Yield and ICICI Pru Dividend Yield Equity Fund as of May 2022.
Dhuraivel Gunasekaran
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