Stocks To Buy: 2 Power Stocks That Give Dividend Yield Of 6% To 7%

Markets have been in a range for sometime now. Many experts believe that Foreign Portfolio Investors would continue to sell at higher levels. Here are 2 stocks from the power space that could be worth buying for long-term.

Buy the stock of Power Grid

Power Grid has a consistent track record of paying dividends. For the year ending March 2022 Power Grid Corporation of India announced a total dividend amounting to Rs 14.75 per share. At the current share price of Rs 216 this results in a dividend yield of 6.8%. The stock is also trading at a very reasonable price to earnings multiple of under 10 times. Emkay Global recently had a buy call on the stock of Power Grid with a target price of Rs 250. The stock of Power Grid, hit a 52-week of Rs 185.35, while the 52-week high was Rs 248.25.

CESC: Dividend yield of more than 6%

The stock of CESC has been under some selling pressure for the last few days. The stock is just 3% away from its 62-week low. The shares of this Kolkata power supplier had hit a 52-week high of Rs 88 as well. Emkay Global had a buy call on the stock and had stated that the price of CESC could reach Rs 101. Based on the current market price and past dividend, the dividend yield on the stock of CESC is slightly more than 6%.

Markets to be volatile

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services Ltd, domestic equities witnessed volatile session amid weak earnings report during the day. "Nifty opened positive but soon came under pressure largely dragged by FMCG and Auto stocks. The index saw some recovery from the days' low to close with loss of 50 points (-0.3%) at 17714 levels. Except for banking and realty, all other sectors ended in red. Metal stocks saw some selling on account of poor set of numbers from Tata Steel and Hindalco. Globally investors await Federal Reserve Chair Jerome Powell speech for more economic cues. While on the domestic front, all eyes will be on the forthcoming RBI policy meet due on Wednesday to gauge any pause in the near-term monetary tightening measures. Stock specific action would continue amidst busy results season till market gets any clear direction," he stated.

Disclaimer

The stock has been picked from the brokerage report of Emkay Global. This article is for informational purposes and highlights the dividend yield. The "buy" call is not ours and that of broking firm Emkay Global. Neither the broking firm, nor Greynium, nor the author should be held responsible for losses based on a decision from the article.