2 Strong Growth & Dividend Stocks To Buy For Value Investors For Long-term

If you are looking at value and dividend stocks, there are plenty of opportunities. This is largely because the markets have fallen sharply over the last couple of months, throwing-up opportunities. Here are some growth, and dividend stocks to buy for value investors.

SUN TV Network

Sun TV Network is one of the top television broadcasters in India, operates Satellite Television Channels across six languages of Tamil, Telugu, Kannada, Malayalam, Bangla and Marathi, airs FM radio stations across India and owns the SunRisers Hyderabad Cricket Franchise of the Indian Premier League and the Digital OTT Platform Sun NXT.

There are a few things that make the stock of Sun TV Network a value stock to buy. To begin with the stock gives a dividend yield of more than 3%, while the second is that it is a debt free stock. The advantage of a debt free stock is that when interest rates are rising, there are no concerns. The second reason for the stock is that the stock is very reasonable in terms of valuations. The company reported an EPS of Rs 41.74 for 2021-22, which translates into a p/e of just 10 times. As the economy recovers, we believe that media stocks are likely to do well. Even analysts are optimistic on the stock of Sun TV. We believe that the stock should trade at 20 times p/e at least, which should see the stock doubling from current levels.

REC

While this may not be a growth oriented stock like Sun TV Network, the stock is excellent for its dividend yields. The company declared a dividend of Rs 11.7 per share for 2021-22, which translates into a dividend yield of 10.16%. Now, if you see the stock of REC has hit a 52-week high of Rs 168 and has fallen substantially to levels of Rs 115.65. The fall has been nearly 30% from high levels, which has made the dividend yields attractive. The other thing is that we do not see any reductions in the dividend given the nature of the company's business. The company is among the largest infra financing players in the country, with a particular emphasis on power financing. Overall, we believe that even retired investors can invest in the stock of the company as the dividend yields are much better than interest rates of fixed deposits. REC tends to declare larger dividend in Feb and March and again dividends in August, November of so.

Markets to remain volatile

Markets are likely to continue with its volatility given RBI and ECB policy meeting scheduled this week and may offer even better opportunities of buying some of these stocks at lower levels. Further couple of macro data points like US inflation, China inflation and UK GDP data are also due this week. Nifty continued to move in a broader range and has managed to stay above its key support of 16400 levels. With result season now over, investors would track global developments as well as Central bank's commentary for taking fresh cues on markets. We suggest long term investors to gradually accumulate large-caps given the relative valuation comfort in them.