Dividend Yield Stocks

January 9, 2012 High dividend yield stocks offer a safe haven to investors where safety has greater priority compared to high returns. Hence, even if the market remains volatile, going ahead, an investor can still get a decent return on investment, thanks to good dividend yielding stocks. The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment in a weak market. We have analysed the dividend yield pattern of BSE 500 companies and have filtered companies, which have been providing a dividend yield of at least 2% or more for the last seven years. Exhibit 1: Consistently high dividend yield stocks
Company Name Alfa Laval (I) # Allahabad Bank Andhra Bank Ashok Leyland Castrol India # Chambal Fertilizers Clariant Chemicals # Deepak Fertilizers Electrosteel Castings Finolex Industries GNFC GE Shipping Co Graphite India GRUH Finance Hindustan Unilever Indian Overseas Bank Karnataka Bank Nava Bharat Ventures ONGC Polyplex Corporation State Bank of Travancore SCI Supreme Industries Syndicate Bank T N Newsprint Tata Chemicals Tata Elxsi Tata Investment Corporation VST Industries Idirect Code ALFLAV ALLBAN ANDBAN ASHLEY CASIND CHAFER COLCHE DEEFER ELECAS FININD GNFC GESHIP CAREVE GRUFIN HINLEV INDOVE KARBAN NAVBHA ONGC POLCOR STABTR SCI SUPIND SYNBN TAMNEW TATCHE TATELX TATINV VSTIND % Div. Yield 2011 % 2.4 2.6 3.6 3.5 3.3 2.4 4.1 3.2 4.0 3.4 3.4 3.0 3.8 3.1 2.2 3.5 2.8 2.7 3.0 4.9 2.4 5.1 2.4 3.0 3.8 3.0 2.8 3.1 7.0 Div. Yield 2010 % 2.1 3.9 4.6 2.7 4.1 3.1 5.3 4.0 2.4 4.6 2.9 2.7 4.0 3.0 2.7 3.8 3.3 2.1 3.0 4.1 2.6 3.2 3.2 3.5 5.0 2.8 2.2 2.6 5.8 Div. Yield 2009 % 2.7 6.4 10.0 5.5 4.5 4.3 12.3 7.1 9.2 3.6 5.4 4.3 13.7 5.2 3.1 9.9 9.2 5.4 4.1 6.2 6.1 8.5 4.7 6.3 7.9 6.4 8.5 6.5 13.3 Div. Yield 2008 % 2.3 4.6 5.4 4.3 3.9 3.6 3.0 3.6 2.9 4.6 3.2 4.0 5.8 2.6 4.2 2.6 2.5 2.6 3.3 3.8 2.1 4.3 4.6 3.7 4.5 3.2 4.4 3.1 6.5 Div. Yield 2007 % 3.0 4.1 5.0 3.9 4.0 5.8 5.3 3.5 3.3 4.4 4.9 5.7 5.8 2.2 2.8 2.9 2.1 4.0 3.5 3.9 3.3 4.9 3.2 4.4 4.8 3.9 2.4 4.4 6.1 Div. Yield 2006 % 2.5 5.1 4.3 3.3 3.3 4.6 7.6 3.0 3.4 4.3 3.7 3.4 2.0 2.7 2.5 2.7 3.0 2.5 3.4 2.4 2.4 5.0 3.2 2.8 2.6 2.7 3.3 2.8 2.6 Div. Yield 2005 3.4 3.6 2.8 4.8 3.8 6.2 2.4 4.8 3.0 4.3 5.4 5.9 2.3 4.7 3.5 3.2 2.8 2.3 4.5 4.3 3.7 4.7 3.2 3.7 4.7 4.3 3.0 4.0 5.4

Wyeth WYELED 2.6 2.8 7.8 6.6 6.6 4.0 4.9 Source: Capitaline, ICICIdirect.com Research # data for Alfa Laval, Clariant Chemicals and Castrol represents year 2010 to 2004 as these companies have a December year ending and the latest financial year end data available is till December 2010 Note : Dividend yield is calculated on financial year end closing price

ICICI Securities Ltd. | Retail Equity Research

Pankaj Pandey

Head Research ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No. 7, MIDC Andheri (East) Mumbai 400 093 research@icicidirect.com

pankaj.pandey@icicisecurities.com

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