Some of the best dividend yield shares in India

by Manshu on December 14, 2011

in Investments

About three months ago I did a couple of posts on the top 100 and top 200 high dividend yield shares in India. I wanted to cover the next 200 shares or so as well, but since the market has been quite choppy in the last 3 months I wanted to see if any of the original high dividend yield shares have gone down to levels that make the yields very attractive.

I looked at the all the high dividend yield shares from those two posts, and removed the ones that didn’t have any dividend paid at all in 2011.

After that I took the price of today’s close and re-calculated the dividend yields on each of these stocks. I then took the shares which had more than a 3.00% dividend yield and went to MoneySights to get the market capitalization, P/E ratio and Debt / Equity ratio of these shares.

Here is what the result looks like.

Company

Close Price

Dividend Paid

Dividend Yield

Market Cap

P/E Ratio

Debt Equity Ratio

SCI

56.15

5.50

9.80%

  2,618.00     Loss

0.66

INDIABULLS

145.55

11

7.56%

4,530.00

6.65

3.17

ANDHRA BANK

93.25

5.5

5.90%

5,218.00

3.79

-

GUJARA NRE COKE

17.25

1

5.80%

905.00

8.23

0.67

INDIAN OVERSEAS BANK

86.45

5

5.78%

5,349.00

4.84

-

HERO MOTORS

2003.45

110

5.49%

40,006.00

18.87

0.5

UCO BANK

60.9

3

4.93%

3,822.00

3.44

0.35

VIJAYA BANK

53

2.5

4.72%

2,500.00

5.01

0.36

Bajaj Holdings

688

35

4.36%

7,657.00

10.04

-

ORIENTAL BK

252.45

10.4

4.12%

7,366.00

5.73

-

VST Industries

1125.00

45

4.00%

1729.00

14.69

-

ALLAHABAD BK

151.35

6

3.96%

7,208.00

4.47

-

INDIAN BANK

189.35

7.5

3.96%

8,138.00

4.52

-

SYNDICATE

94.3

3.7

3.92%

5,406.00

4.44

-

CUMMINS INDIA

337

13

3.86%

9,342.00

15.89

-

RENUKA SUGAR

28.45

1

3.51%

1,910.00

38.65

0.74

DENA BANK

63

2.2

3.49%

2,100.00

2.93

-

SUN TVNET

262.65

10

3.33%

10,351.00

13.04

 

As you can see there are a fair number of large companies that have decent dividend yields, low P/Es and low Debt / Equity ratio. I’ve only looked at large companies and used the Debt / Equity ratio because that indicates stability and the chances of these companies going bankrupt and the share price going to zero is lower than smaller companies with high debt on their books.

P/E ratio is a quick measure of finding out if the share is over priced or not, and that’s the reason I’ve included that in this table.

I’ll continue to add to this list and if you know any good dividend yield shares not present here please do leave a comment and I’ll include them here.

Just looking at this table – I don’t think any company stands out as too good to miss which is what I was hoping for when I started to create this list.

Another thought on this list is that it is not as useful as a list of high dividend yield stocks in the US because it is primarily dominated by banks and if you don’t want to take exposure to that sector then there aren’t many options outside that.

Update: VKD Menon emailed that SCI was missing from this list and I’ve added it now. 

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{ 18 comments… read them below or add one }

Dev December 14, 2011 at 3:41 pm

Hello Manshu…

Its a good compilation of the scripts paying above 3% divident. However, to take a more firm desicion for investing in this stock we also need to check the consistency. Which means we need to try and gather the data for 3 years and 5 years. And then see which stock is performing well… Even if there are 10 stocks that have given consistent performance for last 3 or 5 years it will be really helpfull…. I understand that this task is pretty time consuming… So incase if you can tell me how to tabulate those data… I may take few scripts from above list and try to gather the information…

Hope this idea is useful…

Thanks
Dev

Reply

Manshu December 14, 2011 at 11:24 pm

Amazing! I had the same thing in mind for a future post!

I deeply appreciate your offer to dig up data and the way you could do that is to go to the NSE website at nseindia.com, look up a stock like Hero Motors, click on Company Information, and then click on “View all Reports” then in the next screen select Ex – Date as more than 24 months and search. You will be presented with a list of results and that will also have the dividend information.

Thanks!

Reply

Dev December 15, 2011 at 3:21 pm

Thanks for your appreciation Manshu…. I will start working on the data today… I may not be fast like you… but will try my best :)

Reply

Manshu December 15, 2011 at 7:12 pm

Hey Dev – the post is already up today, so no need to look at this data now…except of course if you’re just curious. Thanks!

Reply

Dev December 15, 2011 at 7:32 pm

Hey wow… thats good… thanks… Will still try and analyze :)

Reply

Mayank Gupta December 14, 2011 at 11:30 pm

Although these stocks have given dividend between 3-7%. One should also look at the fundamentals of the stock before investing because if you want your stockto be a multibagger or four bagger, capital gains is what one should aim at.

Reply

Manshu December 15, 2011 at 10:57 pm

That’s absolutely right and I second that fully – this list should be nothing more than a starting point to research more on a company. Buying anything based on just this list alone is not wise at all.

Reply

J.JAIKUMAR December 15, 2011 at 3:11 pm

Vst industries/chennai petroleum have been left out. Please also advise whether the 2 can be bought at current levels

Reply

Manshu December 15, 2011 at 10:56 pm

Thanks for those two suggestions – I’ve added VST but not Chennai Petro since I didn’t see that they paid any dividends after August 2010.

I’ve never made any stock recommendations on here, and I’m afraid I won’t be able to offer you any comment on whether you should buy these stocks or not.

Reply

Nine Million Dollars December 15, 2011 at 9:23 pm

Hi Jai Kumar,

I hope Manshu and me personally would refrain from stock specific recommendations. If you have risk risk profile, you may look to invest in equity mutual funds. Looking at these two stocks, you may add them in your portfolio of stocks. But also make sure that you have a diversified portfolio across large cap,mid cap and across sectors rather than focusing on just two stocks.

Mayank Gupta

Reply

vinay December 18, 2011 at 11:56 am

Please add Balmer lawrie & Co. in this list.

Reply

Manshu December 19, 2011 at 1:29 am

I’ll look into that company and see what their size, and yield is. Thanks for the suggestion.

Reply

Chandra K Rohatgi February 8, 2012 at 11:58 pm

Check yield from HCL Infosys

Reply

Binny March 19, 2012 at 5:42 pm

IOCL, BPCL, HPCL, Coal India…

Reply

dpatel September 29, 2012 at 2:43 am

What u think about HCL INFO?
present yield is 20%

Reply

Manshu September 29, 2012 at 5:09 am

It is not 20% as far as I can see but yeah still a pretty good yield.

Reply

santonu May 2, 2013 at 12:59 pm

Whether is it a good idea to buy a stock on ex-dividend date and the price of the stock falls by the same amount of the dividend declared on ex dividend date at the start of commencement of trade and in most cases it is down further on that day

Reply

Manshu May 2, 2013 at 10:15 pm

For long term investment? No it won’t make much of a difference. Read the details in this post: http://www.onemint.com/2011/01/04/dividend-declaration-ex-dividend-and-record-dates/

Reply

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