Here are a list of stocks that give you the best dividend yields. The same is compiled based on the report of IDBI Capital Markets.
Things to remember
It is important to remember that the dividends could include a one-off dividend, as well as many factors that could change the dividend in the future. For example, there could have been sale of a unit, the dividend proceeds of which could have been distributed to shareholders. In the list below take the case of NMDC which recently went through a de-merger. All these things would have to be factored in, when buying dividend stocks. In any case, here below are a few stocks that have been compiled based on the report of IDBI Capital Markets. The yields could have changed if the prices have rallied.
12 stocks with high dividend yields
|Name||Stock dividend yield|
|Power Grid Corp||6.70%|
No assurance dividends would be maintained
Past track record of dividends does not mean that the dividend yields would remain same in the future. As mentioned earlier, the dividends above could be factoring in pre-bonus dividends, pre-merger or even a one -off dividend on sale of a unit. Therefore, investors should do their own research and arrive at the right yields. Having said that there is also a possibility that future dividends may not be maintained. For example, in the case of commodities there has been a sharp reversal in the prices, which make impact profitability and hence dividends. Look for companies that have had a more consistent dividend record and based on the above list it could be PFC, Coal India, REC, Oracle Financial Services and a few others.
Market momentum to continue
"Despite the global worry about Fed aggressive rate hike next week and recessionary fears, domestic market hailed the landslide victory for BJP in Gujarat. Sentiments which had got dented due to hawkish view of RBI on inflation, got a boost from the election outcome. Sentiments further got supported with fall in oil price to nearly 1-year low to below $80/bbl, strong economic data and favourable government policies," Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd.
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