65-400% Dividends YTD: IRCTC, Motherson, Tata Power Likely To Witness Fresh Upside; Here's Why?

Stoxbox technical analyst likes three dividend paying stocks from diverse segment such as railways, automobile and power sectors. These are Samvardhana Motherson International, IRCTC, and Tata Power. Two of them are buzzing near their 1-year highs, while Tata Power this week touched a new 52-week high. The analyst expects fresh upside in these stocks in medium to long-term.

Here's what Avdhut Bagkar Derivatives and Technical Analyst at Stoxbox highlighted for these stocks:

Indian Railway Catering And Tourism Corporation Ltd:

Bagkar said, "The stock is in a consolidation range of 720 t0 690, and any breakout out of this range could propel the next move. On the higher side, the price action may rally towards 750, while a breakdown could see stock dwindling to 670 - 660 levels. Stability over 720 shall entice traders to enter long positions."

On BSE, IRCTC shares stood at Rs 701.35 apiece, marginally lower on Friday with market cap of Rs 56,108 crore. Nevertheless, the stock was not far away from its Rs 758.10 levels. YTD, the stock gained by over 9% on BSE.

IRCTC has been in focus recently for its hefty dividends payout. The latest dividends would be of Rs 2.50% or 125% for which IRCTC shares turned ex-dividend on November 17th. Earlier, in 2023, the stock paid up to Rs 2 per share (100%) and Rs 3.5 per share (175%) as final and interim dividend for FY23.

Together, IRCTC has declared up to 400% aggregating to Rs 7.5 per share in 2023 so far.

Samvardhana Motherson International Ltd:

The analyst said, "The breakout mark exists over 95, with support falling around 85 level. A breach of this range shall trigger the next rally in the said direction. The stock needs to absorb all the selling pressure emerging around 100 to alter the medium-term outlook."

Motherson shares stood at Rs 93.10 apiece on BSE, up by 1.15% on Friday with market cap of Rs 63,087.21 crore. YTD, the stock has rallied over 23%.

Also, in 2023, so far, Motherson paid about 65% dividends amounting to Rs 0.65 per share to its shareholders.

Tata Power Co Ltd:

The stock must close with aggressive volumes over 270 mark to enter the next up move. Consecutive closing over 270 shall see a move in the positive direction. Support for the current trend appears at 255 level. Successive closes over 270 could propel a move to 300 mark.

On BSE, the stock ended at Rs 275.75 apiece with market cap of Rs 88,111.49 crore. On Friday, the stock touched a new 52-week high of Rs 278.50 apiece during trading hours. Year-to-date, the stock has now gained by over 30%, giving better returns than the benchmark Sensex and Nifty.

Earlier, in 2023, Tata Power paid 200% dividends amounting to Rs 2 per share to its shareholders.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.