Home Business Lookout for Stocks with high dividend and fair valuations

Lookout for Stocks with high dividend and fair valuations


Here goes the list of stocks that can be considered for financing your penny on the basis of good corporate governance and dividend yield.

In the ongoing blood and war on D-street, valuations have become quite attractive in several deep pockets. But share market gurus suggest that stocks with immense dividend yield have dual benefits. When market scenario changes, the price of the stock surges and the dividend earned income also stays. Lets get to the list of stocks which provide high dividend in share market

Products in ITC portfolio

ITC, established in 1910, it is a conglomerate multinational company with a net income of Rs 12, 824 crores per annum. ITC manufactures products such as cigarettes, processed foods, lifestyle retailing, personal care, greetings, gifts, and stationery items, safety matches, and incense sticks.

Valuations of these stocks are at an all-time low. Dividend payout from past years has been continuous and around 50% with net profit growth at 12% CAGR from the past 4 years.

Coal India, the company produces 82% of the supply in India. It is an Indian state-owned mining and refinery company with zero debt. It has an annual turnover of Rs 140, 603 crores. It has a record of constantly paying dividends with a dividend yield of 9.39% in FY20 on an interim basis. The company for past years has paid Rs 19.88, Rs 16.55, and Rs 13.03 dividend per share. The company operates with high cash flow and margins.

Care Ratings Annual Meeting

Care Ratings, this NSE listed company is the second-largest service rating firm in India with ROE & ROCE of 24.55 percent & 36.02 percent, respectively. The company paid a dividend yield of 10.46 percent in FY19. It enjoys higher margins and immense cash accrual.

NMDC, an Indian state-controlled mineral producer with 72.43% owned by the Government of India. The company is operating with debt-free status and regular dividend payout. It has a dividend yield of 7.50% in FY20 (interim basis) and a good ROE of 18.23 percent.

Indian government-owned oil and gas company, Indian Oil has a net income of ‎₹16,894 crores annually. It has paid up a dividend yield of 11.89% and has an active cash flow generation and high margins with flexible access to capital markets.

A worker preps the roll prior to running the presses at TC Transcontinental Printing, a newspaper printing plant, in Montreal, Quebec, Canada January 14, 2018. Picture taken January14, 2018. REUTERS/Christinne Muschi – RC1343C034F0

MPC, a global provider of platform and content solutions for the digital world. It has a good history of paying a dividend, with the generation of 22 percent dividend yield in FY 20 and operating with debt-free. It has a high cash flow with ROE and ROCE of 14.56% and 20.61%, respectively.

USA, New York, New York City, Traders at trading desk

An investment advisor itself, Capitalvia Global Ltd. has puts its eggs in ICICI Prudential Life Insurance Company, Bharat Petroleum Corporation (BPCL), MindTree, Muthoot Finance and Mahanagar Gas. It pays dividend yield through these attractive valuations.

Hero MotoCorp, the largest two-wheeler manufacturer in the world has retained a 46% market share in the same category. On a consistent basis, it has realized approx 25% return on capital employed (ROCE) since it posses a capital-efficient business model and has been offering a 5% dividend payout.

KSB, a supplier of pumps, valves, and related services, and having it presented with sales and marketing organizations, manufacturing facilities and service operations on all continents; the dividend per share for this world’s leading manufacturer stands at Rs 5-6/share, which provides a dividend yield of 1.5 percent.

BEL, Indian state-owned aerospace, and defense company, it currently exhibits attractive valuations and has a record of paying consistent dividends, with zero debt column on the balance sheet and generates strong cash flow from operations yield.

TV Today, India based English-Hindi news television network, as company has good record of paying high dividend with FY20 dividend payout stands at Rs 20/share in FY20. In medium term, due to news-heavy events TV Today will be maintaining growth momentum in broadcasting revenues.


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