If you are looking to buy stocks, with an intention of a good dividend yield in the next six months, there are plenty of opportunities. Here are a few stocks that could declare good dividends, purely based on their past track record of declaring dividends. However, there is no guarantee that the company would maintain the same dividend and in some cases the shares could face other risks, including business risks.
In the past few years, Vedanta has declared hefty dividends either in Oct or in Feb-March. In 2017, it declared a solid dividend of Rs 17 per share in the month of March 2017, followed by a hefty dividend of Rs 21.20 in March 2018 and Rs 17 in the month of Oct 2018.
It declared a smaller dividend of Rs 1.85 in March 2019 and hence is due for a decent dividend either in Oct 2019 or March 2020.
For the quarter ending June 30, 2019, the company's net profits dipped slightly, while the EPS has decreased to Rs. 3.65 in June 2019 from Rs. 4.13 in June 2018. However, we believe the company will continue to declare a good dividends in the years to come. It's business prospect have not changed too much, so one can expect a good dividend yield in the years to come.
This is another stock that is set for good dividends either in Oct or later in March. In March 2018, the company declared a dividend of Rs 6 and followed by another dividend of Rs 20 later in Oct 2018.
In 2017, it shareholders received two dividends, once in March 2017 of of Rs 27.5 and again in Oct 2017 of Rs 2. The dividend yield each financial year itself takes the dividend yield to in excess of 9 per cent.
Of course, the yield is based on the past track record of dividends and one cannot be sure what will be declared later this year. But, based on the profitability and the fact that no dividend was declared in March 2019, we expect the company to declare an attractive dividend.
Coal India is another stock that has declared good dividends in the last few years. In FY 2018, the company declared a dividend of Rs 13.1 per share, which takes the dividend yield to near 6.6 per cent.
Again, most of the companies mentioned here are mining companies, which almost always never run into losses and the business prospects are also assured.
Coal India tends to declare dividends in the month of Feb and hence one can expect dividends in the next months. The company has also performed reasonably well in the last few quarters and we do not anticipate the dividend falling from these levels.
Last year IndiaBulls Housing declared a dividend of Rs 40 per share. It tends to declare dividends at least 4 times a year. This year, we suspect that Rs 40 dividend maybe far-fetched and hence the company may end-up declaring a dividend of Rs 32 or thereabouts. At the current market price of Rs 425, the dividend yield works to around 7.5 per share, assuming the company declares a dividend of 32, considering the strains the NBFC and HFC sector is going through. However, before investing one must also consider other risks and not only dividends.
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