Thursday, July 21, 2011

Bets on Dividend Cos Pay of for Investors


COMPANIES                  YIELD                        DIVIDEND                      CMP
                                    2010       2011                   2010         2011
Mangalam Cement         5.2           3.6                      60             60                    116
Hinduja Global              4.7           4.0                      200           200                  426
Diamines&Chemicals    5.2          3.0                       60            20                     76
Precision Wires             4.6          3.2                       60            44                    128
Auto Corp                    4.2          0.4                       150          10                     341
Munjal Showa               4.1          3.1                       125           100                   62
Hinduja Ventures          3.9           2.9                       125           100                   334
Bharat Seats                 3.9           3.2                       40             30                     21
Sona Koyo                   3.8           1.4                       65             30                     17
ABC Bearing                3.8           3.3                       60             45                     156
Lancor                          3.8           0.9                       100           100                   52 
Apcotex                        3.7          3.4                        70             50                     190
Sensex -1.1% return
                                                                                                                                Source ETIG Database

It is always noticed that the co that announces dividend outperforms the market ahead of the record date.If one is an investor an just looks for dividend paying cos fundamental check is a must.The cos which are cash rich tends to have a high dividend yield. Along with the capital appreciation in the stock price we see high dividends adds cherry to the cake. Cos which have huge cash surplus the cos which are small they need cash for further expansion only big players in the market  can afford .
By - Nimit Jalan





1 comment:

  1. This means that companies who declare high dividends may not always be a good bet. this is a gimmick used to move market setiments hecne one must research well before getting into such companies. This event mostly apply for mid cap and small cap companies!!

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