Several blue chip stocks have plunged recently particularly from the metal and PSU banking space. These stocks have fallen to such an extent that some of them have touched their 52-week lows. From here on their dividend yield becomes very attractive. Take a look at three such shares which can give you high dividend yield.
NMDC is a debt free cash rich company. In fact, the company has whopping cash reserves on its books.
NMDC has declared a dividend of 850 per cent last year. This works out to a yield of 8.32 per cent at the current share price of NMDC Rs 102.
In fact, banks give you interest rates of around 8 per cent on fixed deposit and getting more than that on dividends, which are tax free is excellent. Remember interest earned on bank deposits is not tax free.
A good share to bet on if economic recovery takes shape. The share has been hammered down because of low commodity prices and should commodity prices recover expect a sharp recovery in the share price of NMDC.
Syndicate Bank is yet another stock that can give you handsome dividend yields. The stock has also recently fallen to 52-week low of Rs 87. The bank recently reported numbers that were not as per expectations.
Last year Syndicate bank declared a dividend of 47 per cent and if it maintains the same dividend, expect dividend yields of close to 6 per cent.
Another factor to keep in mind is that you are getting the stock at a 52-week low. It's doubtful that shares of Syndicate Bank could fall any lower, as the price to earnings ratio has now reached abysmally low levels of just 5.
Sun TV Network keeps declaring interim dividends and like NMDC is a cash rich debt free company. Over the last few weeks the share price of Sun TV has been hammered down owing to worries over the company being granted security clearance by the Ministry of Home Affairs and hence license from the Information and Broadcasting Ministry.
However, the company declares good dividends. If you buy the stock now your yield based on last years dividend works out to close to 4 per cent.
Though the dividend yield may not be as high as NMDC the stock is worth buying considering the company's huge presence in the South India television market, radio and DTH.