5 banking stocks that offer high dividend yield

Attractive market price ensures a high dividend yield

Syndicate Bank paid a dividend of 67 per cent for the financial year 2012-2013. Even if the bank were to retain the same dividend, the yield works to around 8.10 per cent. If one were to annualise it, the yield would be even higher, if the current market price does not surge. 

One of the highest dividend yields

The Dena Bank scrip is quoting at Rs 54.30 on the National Stock Exchange. Last year the bank paid shareholders a dividend of 47 per cent. If one takes the current market price and the dividend paid last year, the dividend yield translates to 8.66 per cent. However, Dena Bank profits have been falling and one cannot be sure the bank will retail last year's dividend.

Asset quality showing signs of improvement

Bank of India reported better then expected quarterly results for the period ending Sept 30, 2013. Last year the bank distributed a dividend of 100 per cent to its shareholders, taking its yield to around 5 per cent. It's likely that the bank may retain the same dividend as last year.

A yield of 5.52 per cent

The share price of IDBI Bank has been rising steadily in line with other PSU banking entities. If one buys the shares of IDBI Bank, the dividend yield at the current market price of Rs 63 works to around 5.52 per cent. It's likely that the bank may retain the same dividend as last year.

Yields likely to cross 6 per cent

Vijaya Bank is another public sector bank that can offer high dividend yields at the current market price of Rs 39. In fact, the yield at the bank translates to 6.11 per cent at the current market price.