Markets are hovering near record highs, and yet there is a possibility of looking at stocks that good generate good dividend yields in the short to medium term. It is important to remember that dividends are tax free in the hands of investor upto a sum of Rs 10 lakhs. Here are a few such stocks, which are attractive from the point of dividends:
Gas Authority of India (GAIL) shares are available at a near 52-week low. The shares have fallen recently on account of a drop in quarterly net profits for the period ending Sept 30, 2019.
On a consolidated basis, the company's net profit declined 34.73 per cent year on year to Rs 1167.58 crore in Q2 September 2019. Total revenue from operations fell 6 per cent to Rs 18249.90 crore in Q2 2019 compared with Rs 19352.98 crore in Q2 2018. The results were a disappointment for the street, which saw the share price plummet to Rs 123, which is very near its 52-week low.
However, at the current market price the shares are attractively priced for its dividend. The dividend yield based on last years dividend is around 5.80 per cent, which is not bad at all. We do not expect the company to cut dividend drastically, though there could be some cut.
This is another stock, which in all probability good declare a good dividend and we anticipate a dividend in Feb 2020, along with the quarterly numbers for the period ending Dec 31, 2019.
It's very difficult to hazard a guess on what the dividend could be, but, even if the company declares a dividend between Rs 15 to Rs 20, which is lower than last year, your dividend yield could be anywhere between 7.3 per cent to 9 per cent.
The company is a cash rich company, with assured business prospects. It is one of the largest integrated zinc and lead players in the world with a significant presence in mining of silver as well.
Buy the stock for decent dividend yields in the coming years.
Coal India is a government owned company, which tends to declare dividends in Feb. A dividend between Rs 10 to Rs 15 is a possibility, which should take the dividend yield on the stock to between 5 to 7.5 per cent. This is a company that is debt free and cash rich.
It has assured business prospects and presently virtual monopoly in the coal miningbusiness. Coal India is a good stock to buy for its dividend yield.
It's important to note that we have just estimated the dividend of some stocks, which are just a guess. However, it is possible that these companies could declare a dividend in the same range we have mentioned, which could results in an attractive dividend yield.
This article is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.