Nifty stocks have fallen about 4% this week as relentless pressure in stocks continue. Rising bond yields in the US is resulting in some serious selling pressure and markets are trending lower. Here are 2 stocks that you can buy from the Nifty and which offer you 4 to 5% dividend yields.
The stock of ITC has fallen this week, in line with a sharp fall in the stock markets over the last few days. The stock which was trading at Rs 222 at the start of the week has now slumped to Rs 217. At the current market price of Rs 217, the company's dividend yield on the stock works to 4.91% considering a dividend of Rs 5.5 per share.
Now the one thing that is important is to anticipate whether dividends for the future would be reduced at some stage or the company will enhance the same. ITC is a cash rich, debt free company with strong brands in the FMCG, hotels, cigarettes and paper space.
The company is likely to maintain the dividends in the coming years and maybe enhance the same. The only problem is that the stock has been an under performer for a few years now.
The shares of Bajaj Auto fell sharply on Thursday following its quarterly numbers. In fact, the stock has now recovered partially. The stock at a current market price of Rs 3321 fetches a dividend yield of 4.23%.
The company last year declared a dividend of Rs 140 per share and we expect the company to maintain the same this year as well. Bajaj Auto did not have a great quarter for the period ending Dec 31, 2021 as the net profits fell. The company saw its net profits fall 22% to Rs 1214 crores.
After the sharp fall in the share price of the Bajaj Auto the shares are trading at a p/e multiple of around 15 times one year forward earnings. The one problem for the company is that inputs costs have soared and unless bike prices rise, margins may see an impact
Investing in equities is risky and investors must therefore understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any losses caused based on the article. The author and his family do not hold any shares in Bajaj Auto nor ITC as on the date of this article. It is also important to remember that Indian stocks markets are expensive and one needs to be careful.