PSU stocks: SAIL, NMDC, IndianOil & Nalco a play on high dividend yields, brokerages say
Religare Broking has filtered out 10 high dividend yielding stocks from the PSU space, with Steel Authority of India (SAIL), NMDC, and Indian Oil Corporation having a dividend yield of more than 10 per cent.
- Jun 2, 2023,
- Updated Jun 2, 2023 3:51 PM IST
Investors looking for a passive and steady income, along with capital appreciation and wealth creation, go big on dividend-yielding stocks. Such counters are considered to be boring plays as they take a long time to move higher and dividend payout also impacts their stock prices. However, the overall return to the investors remains strong in the long run.
Majorly, shares of public sector undertakings (PSUs) are considered to be a high dividend play, while selecting other players from other sectors such as mining and healthcare give a handsome dividend to the investors.
Religare Broking has filtered out 10 high dividend-yielding stocks from the PSU space, with Steel Authority of India (SAIL), NMDC, and Indian Oil Corporation having a dividend yield of more than 10 per cent. Axis Securities remains positive on SAIL with a target price of Rs 93 as it sees company performance in Q4 to be decent, while BOB Capital and Antique Stock broking have 'hold' ratings for the stock with a target price of Rs 90 and Rs 92, respectively. ICICI Securities, Motilal Oswal and Sharekhan have a buy rating on NMDC with a target price of Rs 118, Rs 135 and Rs 125 respectively. On the other hand, B&K Securities and Elara Capital have buy ratings on Oil India Corporation with a target price of Rs 109 and Rs 100, respectively.
The dividend yield is one of the main factors to consider when investing in dividend-paying stocks. It is an indicator of the return that investors are earning on their shares. Investors, interested in the dividend income, can consider these stocks for investment, said Religare Broking.
Other dividend-yielding PSU stocks selected by Religare include PTC India, National Aluminium Company, Coal India, Oil & Natural Gas Corporation, Power Finance Corporation of India and GAIL (India).
Among other high Dividend yielding stocks, IDBI Capital had picked Hindustan Zinc and Sanofi India in April 2023, with the dividend yield at 25.7 per cent and 11.9 per cent, respectively. The brokerage saw Swaraj Engines as also a high dividend stock with a yield of 10.4 per cent.
However, the brokerage considered only those companies which had a market capitalisation of more than Rs 800 crore and the company should be profit making for the past 3 years, five-year average ROE should be more than 9. Also, it did not consider special dividends (one-off), while consistent Special dividends are considered.
Axis Securities report released in March saw Vedanta as the highest dividend-paying stock, followed by Hindustan Zinc. The stock currently has a dividend pay of 36.26 per cent and 24.62 per cent, respectively.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
Investors looking for a passive and steady income, along with capital appreciation and wealth creation, go big on dividend-yielding stocks. Such counters are considered to be boring plays as they take a long time to move higher and dividend payout also impacts their stock prices. However, the overall return to the investors remains strong in the long run.
Majorly, shares of public sector undertakings (PSUs) are considered to be a high dividend play, while selecting other players from other sectors such as mining and healthcare give a handsome dividend to the investors.
Religare Broking has filtered out 10 high dividend-yielding stocks from the PSU space, with Steel Authority of India (SAIL), NMDC, and Indian Oil Corporation having a dividend yield of more than 10 per cent. Axis Securities remains positive on SAIL with a target price of Rs 93 as it sees company performance in Q4 to be decent, while BOB Capital and Antique Stock broking have 'hold' ratings for the stock with a target price of Rs 90 and Rs 92, respectively. ICICI Securities, Motilal Oswal and Sharekhan have a buy rating on NMDC with a target price of Rs 118, Rs 135 and Rs 125 respectively. On the other hand, B&K Securities and Elara Capital have buy ratings on Oil India Corporation with a target price of Rs 109 and Rs 100, respectively.
The dividend yield is one of the main factors to consider when investing in dividend-paying stocks. It is an indicator of the return that investors are earning on their shares. Investors, interested in the dividend income, can consider these stocks for investment, said Religare Broking.
Other dividend-yielding PSU stocks selected by Religare include PTC India, National Aluminium Company, Coal India, Oil & Natural Gas Corporation, Power Finance Corporation of India and GAIL (India).
Among other high Dividend yielding stocks, IDBI Capital had picked Hindustan Zinc and Sanofi India in April 2023, with the dividend yield at 25.7 per cent and 11.9 per cent, respectively. The brokerage saw Swaraj Engines as also a high dividend stock with a yield of 10.4 per cent.
However, the brokerage considered only those companies which had a market capitalisation of more than Rs 800 crore and the company should be profit making for the past 3 years, five-year average ROE should be more than 9. Also, it did not consider special dividends (one-off), while consistent Special dividends are considered.
Axis Securities report released in March saw Vedanta as the highest dividend-paying stock, followed by Hindustan Zinc. The stock currently has a dividend pay of 36.26 per cent and 24.62 per cent, respectively.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)