Is This The Right Time To Buy High Dividend Yield Stock?
Vidrum / 28 Feb 2012
We at DSIJ calculated the dividend yield ratio of BSE 500 stocks to check which stocks at the moment are looking good as an investment opportunity. We ignored some of the public sector banks as even though they may declare good dividends they are in urgent need of capital. We took last year’s dividend declaration of the companies. Further, we filtered those companies which performed well during the first nine months of FY12. With this we got the following 15 companies which we feel will declare good dividend in the coming months and which would create decent wealth for the investors.
| Sr No | Company | Current Share Price | Dividend Per Share Rs (FY11) | Dividend Yield Ratio | % Growth In 9M Sales Of FY12 | % Growth In 9M Profit Of FY12 | |
|---|---|---|---|---|---|---|---|
| 01 | Titan Industries | 216.8 | 25 | 11.53 | 38.25 | 31.50 | |
| 02 | Bajaj Corp | 115.1 | 9.5 | 8.25 | 30.92 | 50.88 | |
| 03 | ONGC | 281.05 | 16.75 | 5.96 | 9.02 | 20.73 | |
| 04 | Hero Motocorp | 1931.9 | 105 | 5.44 | 25.22 | 24.40 | |
| 05 | Indiabulls Financial Services | 193.75 | 10 | 5.16 | 56.32 | 36.77 | |
| 06 | Balmer Lawrie & Co | 542.5 | 26 | 4.79 | 11.48 | 17.98 | |
| 07 | SJVN Ltd | 19.1 | 0.8 | 4.19 | 6.71 | 18.35 | |
| 08 | Gujarat Narmada Valley Fertilisers | 84.4 | 3.25 | 3.85 | 35.15 | 61.24 | |
| 09 | Rolta India | 90.1 | 3.5 | 3.88 | 18.66 | 68.28 | |
| 10 | VST Industries | 1,279.9 | 45 | 3.52 | 13.95 | 54.41 | |
| 11 | Tata Elxsi | 204.4 | 7 | 3.42 | 34.47 | 23.81 | |
| 12 | HDFC bank | 515.6 | 16.5 | 3.20 | 37.61 | 32.09 | |
| 13 | Deepak Fertilizer | 155.95 | 5 | 3.21 | 45.42 | 25.56 | |
| 14 | Oil India | 1,242.8 | 37.5 | 3.02 | 27.62 | 29.12 | |
| 15 | Eclerx Services | 758.9 | 22.5 | 2.96 | 40.24 | 38.71 | |
One should also note that past declaration of dividend may not continue in future. Also, some of the companies might have declared dividend during the current fiscal (i.e. interim dividend).
We at DSIJ believe that investors usually skip the dividend returns while calculating the net return on investment. Also, with dividend being exempt from tax would give an additional return to the investors.
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