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Last Updated : Apr 11, 2020 08:11 AM IST | Source: Moneycontrol.com

Slideshow | 15 stocks for dual benefits of high dividend yield and attractive valuations

Here is the list of 15 stocks which can be considered for investment on the basis of good corporate governance, fundamentals and dividend yield.

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In the current destruction, valuations have become attractive in several pockets. But experts suggest that stocks that yield high dividends have a dual benefit. The stock price goes up when the market phase changes and the dividend income earned also stays. Here is a list of 15 stocks that can be considered for investment on the basis of good corporate governance, fundamentals and dividend yield.

In the current destruction, the valuations are become attractive in several pockets, while the investors can also get second benefit of dividend yield from such stocks. Here is the list of 15 stocks which can be considered for investment on the basis of good corporate governance, fundamentals and dividend yield: Narnolia Financial

ITC | Narnolia Financial | Valuations of this stock are at historic lows. Dividend payout has been around 50% with net profit growth at 12% CAGR for the last 4 years.

Coal India is a debt free company and consistently paying dividend with dividend yield of 9.39 percent in FY20 (interim basis). In FY17, FY18, FY19, company paid Rs 19.88, Rs 16.55, and Rs 13.03 dividend per share respectively. Company enjoy high cash flow and margins, hence, Rudra Shares and Stock Brokers estimate the same rate of dividend in coming years.

Coal India | Rudra Shares and stock Brokers | It is a debt-free company and consistently pays dividend with dividend yield of 9.39 percent in FY20 (interim basis). In FY17, FY18 and FY19, the company paid Rs 19.88, Rs 16.55, and Rs 13.03 dividend per share, respectively. Company enjoys high cash flow and margins.

CARE Rating is among the second largest full service rating company in India with ROE & ROCE of 24.55 percent & 36.02 percent respectively. Company generating dividend yield of 10.46 percent in FY19 and enjoys higher margins and high cash accrual: Rudra Shares and Stock Brokers

CARE Ratings | Rudra Shares and Stock Brokers | It is the second-largest full-service rating company in India with ROE & ROCE of 24.55 percent & 36.02 percent, respectively. The company generated dividend yield of 10.46 percent in FY19. It enjoys higher margins and high cash accrual.

NMDC has remarkable financial profile reflected by its debt free status, regular dividend payouts, dividend yield of 7.50 percent in FY20 (interim basis), ROE of 18.23 percent and healthy cash generation from mining business: Rudra Shares and Stock Brokers

NMDC | Rudra Shares and Stock Brokers | The company has a remarkable financial profile reflected by its debt-free status, regular dividend payouts, a dividend yield of 7.50 percent in FY20 (interim basis), ROE of 18.23 percent and healthy cash generation from mining business

Indian Oil Corporation provides good dividend yield of 11.89 percent, supported by IOC’s strong parentage arising from the GOI 51.50 percent stake. Further, it is expected to remain strong aided by healthy cash flow generation and high margins along with strong access to capital markets and high financial flexibility due to sovereign ownership: Rudra Shares and Stock Brokers

Indian Oil Corporation | Rudra Shares and Stock Brokers | It provides good dividend yield of 11.89 percent, supported by strong parentage arising from the GOI 51.50 percent stake. Further, it is expected to remain strong aided by healthy cash flow generation and high margins along with strong access to capital markets and high financial flexibility due to sovereign ownership

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MPS | Rudra Shares and Stock Brokers | It has been maintaining a healthy dividend payout and generating 22 percent dividend yield in FY20 (interim basis) along with high cash flow. The company is debt-free with ROE and ROCE of 14.56% and 20.61%, respectively

CapitalVia Global Research has picked up ICICI Prudential Life Insurance Company, Bharat Petroleum Corporation (BPCL), MindTree, Muthoot Finance and Mahanagar Gas to buy for the dividend yield and attractive valuations. Most of these stocks were traded at / near to their all-time high in calendar year 2020 and were declined over 30 percent in past 30 days.

CapitalVia Global Research has picked up ICICI Prudential Life Insurance Company, Bharat Petroleum Corporation (BPCL), MindTree, Muthoot Finance and Mahanagar Gas to buy for the dividend yield and attractive valuations.

Hero MotoCorp possesses capital efficient business model realising more than 25 percent return on capital employed (RoCE) on consistent basis and offers an attractive dividend yield of around 5 percent: ICICI Direct

Hero MotoCorp | ICICI Direct | It possesses capital-efficient business model realising more than 25 percent return on capital employed (RoCE) on consistent basis and offers an attractive dividend yield of around 5 percent: ICICI Direct

A worker checks pipes and valves at Amaal oil field in eastern Libya October 7, 2011. Eight months of civil war have left Libya's oil industry in chaos, with fields that once pumped a total of around 1.6 million barrels per day (bpd) deserted and export terminals, pumping stations and pipelines damaged by fighting and sabotage. Engineers and other workers who left the field, which is about 1000 km (620 miles) southeast of the capital Tripoli, are returning in what the country's new rulers hope will be the resumption of full oil production as soon as possible. REUTERS/Ismail Zitouny (LIBYA - Tags: CONFLICT BUSINESS ENERGY TPX IMAGES OF THE DAY) - RTR2SD29

KSB | ICICI Direct | The company maintained dividend per share to the tune of Rs 5-6/share, which provides dividend yield of 1.5 percent. Historically, a positive spread of equity over bond yield provides a better investment opportunity. Hence, a downside in KSB from present levels to be limited

BEL currently exhibits attractive valuations, has always paid consistent dividends, commands a debt free balance sheet and generates strong cash flow from operations (CFO) yield: ICICI Direct

BEL | ICICI Direct | It currently exhibits attractive valuations, has always paid consistent dividends, commands a debt-free balance sheet and generates strong cash flow from operations yield

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TV Today | ICICI Direct | We believe news-heavy events will help TV Today to maintain growth momentum in broadcasting revenues in the medium term. Another attractive feature is dividend yield. With no major capex, we expect the company to continue paying high dividends (already paid Rs 20 per share in FY20): ICICI Direct

First Published on Apr 11, 2020 08:11 am
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