70-440% Dividends! BEL, HAL, Cochin, BDL: 6 Defence Stocks At New Highs; What Makes These Multibaggers Special

Aerospace and defence stocks skyrocketed on June 3, with 5 leading heavyweights including BEL, HAL, and Bharat Dynamics hitting a new 52-week high. In a single day, these stocks have rallied by 5-11%. And in the long term, they are multi-baggers.

Defence stocks are special and among attractive bets on expectations of a big BJP win as the third tenure of the current government is seen to drive the sector further.

With the expectation of a third tenure by the PM Government, JM Financial said, "We expect healthy gains to follow election results on 4th June, and we believe any dips should be bought into. Policy continuity will ensure that the government's main focus will remain on infrastructure development and manufacturing, which will benefit sectors in Defence and Capital goods space."

Bharat Electronics (BEL):

Leading defence PSU, BEL shares hit a new 52-week high of Rs 323 and rose by over 9% on June 3. The company is set to deliver an 80% dividend for FY24 ahead, which is the final payout.

Hindustan Aeronautics (HAL):

HAL, the largest defence stock in terms of market value, also zoomed by 9.2% to hit a new 52-week high of Rs 5434.9 apiece. In FY24, the stock has distributed dividends up to 440%.

Bharat Dynamics (BDL):

BDL shares which recently split in the ratio of 1:2, soared by 6.6% to hit a new 1-year high of Rs 1660 apiece. BDL has paid a dividend of 88.5% at the latest.

Bharat Forge:

This private sector defence stock rallied by 5.4% to hit a new 52-week high of Rs 1639.35 apiece. The stock has paid up to 125% dividend in 2023.

Paras Defence and Space Technologies:

Touching a new 52-week high of Rs 985 apiece, this aerospace and defence stock gained by 7.5% on June 3.

Astra Microwave:

This defence giant witnessed the most buying with gains of 10.80% to hit a new 52-week high of Rs 956.95 apiece. The stock has paid up to 80% dividend.

Cochin Shipyard:

Another defence PSU, Cochin shares surged by 6.6% to touch an intraday high of Rs 2098 apiece. The stock was near its 52-week high. Cochin has paid up to 70% dividend at the latest.

Mazagon Dock Shipyard:

Also, a PSU, Mazagon Dock stock gained by 8% to touch an intraday high of Rs 3440.05 apiece, near its 52-week high. The uptrend is also despite the brokerage trimming its target price and giving a SELL recommendation on Mazagon Dock shares. The company has paid up to 153.4% dividend in the last 12 months.