4 Stocks That Trade Below Book Value & Offer Dividend Yields Upto 10%

There are several stocks that have fallen sharply in the last few quarters, with the broader markets taking a pounding. This has led to some good quality stocks giving good dividend yields and trading below their book value Let's take a look at some of these.

SAIL

Steel Authority of India, more popularly known as SAIL has a book value of Rs 131 per share and trades at only Rs 83.80 per share. The price to book is barely 0.64 times and the stock also gives a fantastic dividend yield. The company had declared a dividend of Rs 8.75 per share and the current stock price of Rs 83.80 leaves one with a dividend yield of 10.44%. Having said that it's important to remember that last year was a good year and if steel prices continue to fall, don't expect similar dividends.

REC

REC formerly Rural Electrification Corporation, a government of India enterprise also offers very good dividends and the stock trades below book value as well. The book value of the stock is Rs 192, while the shares trade at Rs 117, which is just 0.61 times the book value. The dividend yield on the stock works to nearly 13%, but, then there was a bonus last year of 1:3. This means the company may find it hard to declare the same dividend on an enhanced equity.

PFC

This is one good stock for its low price to book value. In fact, the book value is a solid Rs 364 and the stock trades at just Rs 155, which is a price to book of just 0.43 times. On the dividend front the company's stock gives a dividend yield of nearly 8%, which is again very good. However, one needs to remember that dividends are taxable in the hands of investors.

CESC

Unlike the above, which are government owned entities, CESC is a private player engaged in power distribution, transmission and production. The shares have a book value of Rs 81 and the stock trades at Rs 68, which is way below the book value. The dividend yield on the stock translates to around 6.7%, which is pretty good.

Disclaimer

Please note that this article is for information purposes only. We have only highlighted book value and the dividend yields. Please do not construe this as a buy", "sell" or hold from our end. Neither Greynium Information Technologies nor the author should be held responsible for losses based on a decision from the article.