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5 Dividend Stocks To Buy For Those Looking At Regular Income
Stock markets have become expensive with the Sensex once again crossing the 60,000 points mark. Here are a few stocks that can give you regular dividends. So, if you are retired or depend on regular source of income, here are a few stocks you can buy for their dividend yield.
HeroMoto Corp
The company tends to declare dividends in the month of Feb and July. For the year ending March 31, 2021, the company has declared a dividend of nearly Rs 105, taking the dividend yield in excess of 4%. The stock of Hero MotoCorp has also fallen from 52 week highs of Rs 3600, to around the Rs 2500 mark, which makes it a good bet, given the drop. The shares are also not too expensive considering the 15 times p/e multiple that is accorded to it.
ITC
For the year ending March 31, 2021, the company has declared a dividend of Rs 10.25 per share, resulting in a dividend of 4.87%, based on the current market price of Rs 220. The one problem with the stock is that it has been a laggard over the years. The share price just does not seem to be moving and unless domestic institutions or FPIs buy, it is unlikely to move sharply higher. The company has done well over the years and is a good defensive play, should the markets fall from these levels.
REC
This is one of the top power and infra finance companies in the country. For the year ending March 2021 REC has declared an equity dividend of 127.10% amounting to Rs 12.71 per share. Taking into account the current market price of Rs 136, the dividend yield is in excess of 9%. Several of these companies tend to declare dividends in the month of Feb and March. Buy the stock of REC if you are looking at regular dividends.
Bajaj Auto
This is another stock that has fallen sharply like HeroMoto Corp from its 52-week high. If you buy the stock of Bajaj Auto, you are likely to get a dividend yield of more than 4%. This is a cash rich company with zero debt. Fundamentally after the fall in the share price from 52-week highs the company's p/e multiple at around 15 time is reasonable.
Coal India
This is one of the favorite stocks for investors looking at regular dividends. Again, a debt free company which generates a lot of cash from its business, most of which goes in declaring dividends. The stock at the current market price of around Rs 153, tends to generate dividend yields in excess of 10%. However, one must note that even if the markets rally, this share tends to underperform. So, do not have high expectations for the stock in terms of capital appreciation. The shares of Coal India last closed at Rs 153 on the National Stock Exchange.
Disclaimer
Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies and the author, are not liable for any losses caused as a result of decisions based on the article.
