4 Stocks To Buy With Low P/E And High Dividend Yield Of Up To 10%

It's a time in the markets, where after a long-time we are seeing opportunity to buy fundamentally sound stocks. Here are 4 stocks to buy that are high on dividend yield and low on price to earnings ratio.

REC: Buy the stock for dividend yields of 10.2%

This is one of the top players in power financing projects in the country. In fact, like Cochin Shipyard the company is a majority government of India owned enterprise. The shares of the company are available at Rs 120 and at these levels, the dividend yield on the stock works out to a solid 10.2%. What is astonishing though is that the p/e ratio is just 2.42 times. The book value Is also Rs 243, which means the stock is trading at half the book value. The shares have hit a high of Rs 169, which means there is also scope for capital appreciation in the stock. Given the fact that there is a tendency on the part of the company to declare high dividends regularly, the stock remains a good buy. What's interesting is that the solid dividends are each year and are not a one-off thing. The larger part of the dividends tend to come in the month of Feb or March

Cochin Shipyard: A good low p/e stock

The company is a government of India owned enterprise, that caters to shipbuilding and ship repairs. The government owns a majority stake in the company. Cochin Shipyard has capabilities to build tankers, product carriers, bulk carriers, passenger vessels, air defence ship etc.

Over the years, the company has had a very consistent track record of profitability. This stock gives a dividend yield of 5% on the current market price of Rs 317. The price to earnings ratio at around 7.8 times is not very expensive. The shares of the Cochin Shipyard has hit a 52-week low of Rs 281 and a high of Rs 431. In that sense, we can say that the stock is trading closer to its 52-week lows. The shares of Cochin Shipyard are thus attractive to buy for the low p/e ratio and reasonably high dividend yields.

Oracle Financial Services: MNC Stock with decent dividend yields

Moving slightly away from government companies and looking at an MNC stock that offers very good dividend yield is Oracle Financial Services. On the present stock price of Rs 3550, the stock is available with a dividend yield of 5.60%. Do not expect the stock to be at a p/e like government owned company or offering very high dividend yields. But, if you are looking at a stock that is decently priced in terms of p/e and dividend yields, Oracle Financial Services would be a good stock to buy. The quarterly numbers from the company were also pretty decent to say the least. This is one stock that we would strongly recommend investors to buy. The company is a leading player in the banking and insurance software space.

NMDC

This is a government of India owned enterprise that is largely into iron-ore mining. The stock is available at a low p/e of under 10 and a high dividend yield of 5.5%. The thing about metal and mining stocks right now is that they are in a sweet spot as iron ore, coal and metal prices have all rallied in the wake of the Ukraine-Russia conflict. We believe that the profits would continue to be higher if metal and ore prices continue to trend higher. In any case, the stock of NMDC has fallen from levels of Rs 213 to the current levels of Rs 140, which make the stock attractive after the decline. If you are looking at adding a stock to your portfolio for reasonable price appreciation and dividend yields, NMDC is not a bad bet.