The markets are trading at record levels. At this time, it's best to look at stocks that could offer you good dividends, given that markets could well fall from record highs. We have selected 5 stocks based on their past dividend track record.
Oil India is a government of India owned company, which is into oil and gas exploration. The company has over the years constantly declared very good dividends. In fact, based on the dividend declared in 2018-19, the dividend yield works to 6.78 per cent.
The company has been reporting a good set of numbers and for the quarter ended Sept 30, 2019, the company reported a net profit of Rs 627 crores, resulting in an EPS of Rs 5.79. If you translate this into annualized, the company can report around Rs 23 as Earnings Per Share. This means the stock is discounted barely 7 times one year forward earnings, which makes it very attractive. So, dividend yield and also fundamentally the stock looks attractive.
The shares of GAIL have fallen dramatically over the last few trading sessions, to near 52-week lows. The stock trades at Rs 119 and based on the past dividend track record, the shares are offering a dividend yield of near 6 per cent.
We do not anticipate GAIL declaring significantly lower dividends, when compared to the past, though there could be a slight drop.
However, the shares are trading at a p/e of just 10 times one year forward earnings and do offer tremendous value. The shares are unlikely to drift significantly lower from the current levels and hence offer good value. Investors who have a long-term view can buy the shares of GAIL for regular dividends. It tends to declare dividends at least twice a year.
ONGC is India's No 1 oil and exploration company, with a significant number of oil blocks and is majority owned by the Government of India.
This is another stock that is great for its dividend yield. The shares priced at Rs 125, offer you a dividend yield of 5.6 per cent. In fact, if the shares drop to around the Rs 120 levels, it could be a great buying opportunity for long-term investors.
Interestingly, the p/e of the stock is just 7 times, which is way below the long-term averages. While the dividend yield is no doubt extremely good, so is the valuations, which makes buying the stock a must for every portfolio.
Jagran Prakashan publishes the country's largest circulated newspaper, Dainik Jagran. It also owns Mid-day and Radio City.
The company has a very good record when it comes to declaring dividends and buyback of shares. Recently, it announced a buyback of shares, doing so for the third time in three years. At the current market price of Rs 61, the dividend yield on the stock translates to 5.61 per cent. The shares have almost halved from 52-week highs and therefore offer good potential, should there be a turnaround in the economy. Buy the stock, if you have a long-term perspective in mind.
Cola India also offers a decent dividend yield based on the dividends declared in 2018-19. the company last year declared a dividend of Rs 13.1 and on the save the yield works to 6.52 per cent.
Coal India is the world's largest coal mining company and is also debt free and cash rich.