While the Sensex is barely 4 per cent away from historic highs, there are many stocks that have fallen to 52-week lows. There are also many stocks that have fallen to such low levels, where their dividend yields have become very attractive. Here are 3 such stocks, where the dividends have become very attractive.
Coal India is a cash rich, government of India owned entity, which has a virtual monopoly in coal mining. Demand for coal continues to be robust.
As far as Coal India is concerned, the bet should remain on what dividends it would declare going forward. Our anticipation is that in 2019-20, the company could easily declare a dividend of Rs 17 per share or thereabouts. If you buy the shares at around Rs 234, the dividend yield on the share works to around 7.24 per cent. This is near about the interest that you get in a fixed deposit of SBI and is much higher than savings bank interest rate. Buy the stock for the steady dividends.
Check stock quote of Coal India here
IndiaBulls Housing Finance
IndiaBulls Housing Finance declares dividends every quarter. It can declare about Rs 40, per share for 2019-20. This translates into a dividend yield of 6.09 per cent per year. This is not bad at all considering that dividends amounting to Rs 10 lakhs per year are tax free in the hands of investors.
Now, one or two things need to be mentioned here. IndiaBulls housing Finance shares have swung wildly depending on news that emanates from the NBFC space. Secondly, the bank is looking at a merger with Lakshmi Vilas Bank.
If for some reason, the merger is not approved by the RBI, the stock could turn volatile all over again.
Check stock quote of Indiabulls Housing here
Karnataka Bank reported a solid set of numbers for 2018-19. The bank saw a drop in its non performing assets, while net profits were at a new record high. The shares of the bank are currently available on a cum dividend basis.The dividend yield on the stock is around 3.5 per cent. However, what is interesting is that the shares could also be bought because of the sound fundamentals.
The bank's shares are trading at a price to book value of just 0.52 times, which is exceedingly cheap. The shares are also trading at a pe of just 8 times, one year forward earnings. Buy the stock for the long term.
Check stock quote of Karnataka Bank here
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