Last Updated on Jul 4, 2022 by Aradhana Gotur
Stock markets are currently volatile, with bears gripping them. The macroeconomic risks are not boosting investor confidence either. While a bear market gives opportunities to pick the right stocks for future gains, adopting a dividend-yielding strategy in such a market works well, says HDFC Securities citing historical data.
As per the broker, high dividend-yielding companies are typically mature, limiting the reinvestment scope. Such stocks generally belong to defensive sector companies, which tend to weather volatility and economic downturn better than cyclical sectors.
The broker says that dividend-yielding stocks should not be considered as means to maximise returns but to generate regular income and protect your portfolio in market downturns. Here are 10 stocks with a dividend yield of 3.00% and above per HDFC Securities.
Table of Contents
1. REC
REC is a government-run public infrastructure finance firm with the highest dividend yield of 13.8%. In FY 2022, the company declared a total dividend of Rs. 15.30 per equity share with a face value of Rs. 10, recording a dividend payout of 153% in this fiscal year. REC has equity of Rs. 1,974.9 cr. and earnings per share (EPS) of Rs. 50.8.
2. SAIL
This is another public sector undertaking that operates in the steel production segment. SAIL’s current paid-up equity capital is Rs. 4,130.5 cr., the dividend yield is 13.5%, and EPS is Rs. 30.3 per share. In FY 2022, it paid a total dividend of 87.5%.
3. Power Finance Corporation (PFC)
Owned by the government, PFC is a power finance institution and the parent company of REC. While its dividend yield is 12.2%, its paid-up capital is Rs 2,640.1 cr. and EPS is Rs. 53.1. In FY 2022, PFC gave a dividend of 120% to its shareholders.
4. PTC India
A PSU, PTC India is a power trading solutions provider, which has a dividend yield of 10.4%. In FY 2022, it gave a 75% dividend. PTC’s current paid-up capital is Rs. 296.0 cr., and EPS is Rs. 14.7 per share.
5. Coal India
The largest coal producer in the world, Coal India is a government-owned company with a paid-up capital of ~Rs. 6,162.7 cr. and an EPS of Rs. 28.2 per share. It offers a dividend yield of 9.6% and has paid a dividend of 170% in FY 2022.
6. Housing and Urban Development Corporation (HUDCO)
HUDCO is another PSU that provides techno-financing in the housing and infrastructure development segment. Its paid-up capital is Rs. 2,001.9 cr., EPS is Rs. 8.6 per share, and a dividend yield is 8.5%. In FY 2022, HUDCO has paid a 27.5% dividend.
7. PNB Gilts
Backed by Punjab National Bank, PNB Gilts deals in the institutional infrastructure of the Government Securities market. Its dividend yield is 8.5%. PNB Gilts’ current paid-up capital is ~Rs. 180 cr., EPS Rs. 8.9 per share. In the last fiscal, it had paid a 50% dividend.
8. Indian Oil
This oil marketing company has a paid-up capital of Rs. 9,414.2 cr. and an EPS of Rs. 26.7 per share. Indian Oil offers a dividend yield of 8.2%. In FY 2022, the company paid a dividend of 84%.
9. ONGC
This is India’s largest government-owned oil and gas explorer and producer. Its dividend yield is 7.8%, the paid-up equity capital is Rs. 6,290.1 cr., and EPS is Rs. 37.4. ONGC paid a massive dividend of 210% in FY 2022.
10. RITES
This is an Indian Railways-backed company specialising in the field of transport infrastructure. It offers a dividend yield of 7.5%, has a paid-up equity capital of Rs. 240.3 cr. and an EPS of Rs. 21.5. In FY 2022, RITES paid a dividend of 170%.
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