Buy These 2 Stocks For Dividends Of 3800% And 1500%

It is the time of the year when companies are busy declaring dividends. While in some case the dividend yields are not too high, in other cases they can be very high. Take a look at two stocks we have picked with strong dividends and fundamentals and are good buys as well

Oracle Financial Services

This company has declared a dividend of 3800% of Rs 190 per share. If you see the stock is trading at around Rs 3500 and you receiving an annual dividend of Rs 190, which takes the dividend yield to 5.70%.

The company is into banking and insurance software. Even fundamentally Oracle financial Services is a good stock to buy, given that p/e levels are just around 16.75 times trailing EPS.

There are also a few things that you should note for the dividends of Oracle Financial Services. The board of the company has fixed Tuesday, May 17, 2022 as the Record Date for the purpose of said Interim Dividend and the Interim Dividend be paid on or before Thursday, June 2, 2022 to the Shareholders whose names appear on the list of members of the Company as at close of business on Tuesday, May 17, 2022. It's important to remember that the stock should be bought before May 14 to entitle you to dividends.

HDFC

The Board of Directors of HDFC have recommended a dividend 30 per equity share of face value oft 2 each for the financial year 2021-22, which translates into a dividend of 1500%.

The Record Date for determining the shareholders entitled to the dividend for the financial year 2021- 22, as approved by the board shall be Wednesday, June 1, 2022.

Apart from the dividend, the stock of HDFC is also worth buying for its strong fundamentals. The stock has been the hardest hit among Nifty stocks, owing to intense selling pressure from Foreign Portfolio Investors. These set of investors have been consistently selling stocks for the last six months and since HDFC is heavily owned and a liquid name, the stock has taken a pounding.

In fact, the stock is now trading at Rs 2159, which is not very far away from its 52-week low of Rs 2049. The board of the company recently approved the merger of the institution with HDFC Bank. This is likely to create synergies in the next few years.

Markets to remain volatile

Even if you are buying good quality stocks, buy in small quantities only as markets are volatile. The equity markets continued to remain extremely volatile after the Repo Rate and CRR hike by the RBI.

"The aggressive policy stance by the Fed, given expression to by a rate hike and a statement clearly indicating the decision to go in for shrinking the balance sheet by reducing the holdings of treasury bonds and mortgage backed securities. The tight money policy may have consequences for liquidity as also the cost of money, and a CRR hike may prove to be a dampener for credit multiplier. The prospects of further rate hikes remains strong against the background of the need to tame the soaring inflation at any cost. Rising interest rates and dwindling liquidity remain the twin enemies of equities anywhere. The market traded lower today with losses in the range of to 1.50 % to 2.00 % across sectors, and across market caps. Coming week too the markets will remain under the spell of the central bank actions as also the rising concerns of a soaring inflation with potentially lower economic growth," says Dr. Joseph Thomas, Head of research, Emkay Wealth Management on the market.