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Dividend Yield Stocks

March 13, 2014


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 short-listed companies that would provide a decent dividend yield in the near future. For this purpose, we have
filtered companies that have made at least 75% of FY14 profits in the nine months ended December 2013 and assumed
that the companies would maintain their FY13 dividend payout ratio. We have forecasted the FY14E PAT by taking the
actual PAT of nine months ended December 2013 and assumed Q4FY14 as an average of last three quarters net profit.
Based on the FY14E net profit and FY13 payout ratio, we have calculated the dividend percent for FY14E. Finally, we have
deducted the interim dividends already paid in FY14 to arrive at the expected final dividend and dividend yield.
Exhibit 1: Expected high dividend yield stocks

Co_Name
GIC Housing Fin
GNFC
SJVN
Deepak Fert.
Graphite India
Allahabad Bank
T N Newsprint
VST Inds.
Tata Chemicals
Polaris Finan.
Tata Inv.Corpn.
Torrent Pharma.
J & K Bank
South Ind.Bank
Navneet Educat.
Finolex Inds.
Bharti Infra.
Pun. & Sind Bank
PTC India
Bank of India
Mcleod Russel
Gulf Oil Corpn.
Hind. Unilever
Bajaj Auto
IDFC
eClerx Services
NIIT Tech.
City Union Bank
Indraprastha Gas
Gateway Distr.
Sobha Developer.
Blue Star
Hinduja Global
FDC
Mahindra Holiday
Vardhman Textile
Kalpataru Power
JM Financial
LIC Housing Fin.
Cairn India
Yes Bank

PAT
FY13 Payout
(|cr)
(%)
85.0
33.5
273.1
20.6
1052.3
40.3
129.3
39.8
134.4
55.7
1211.9
26.4
91.5
40.4
126.3
87.9
400.4
45.3
200.8
26.8
173.9
60.3
432.8
48.4
1054.9
23.9
502.3
19.3
106.7
43.1
136.1
54.6
1002.5 136.9
339.2
22.1
198.3
20.4
2819.9
22.6
273.9
28.5
50.2
49.8
3829.0 126.0
3144.1
45.9
1836.2
22.2
171.6
47.4
213.2
24.6
322.0
15.1
354.1
22.6
126.7
61.4
217.2
33.4
39.1
85.2
90.6
49.3
155.2
27.2
90.9
41.9
356.4
12.4
129.5
17.7
182.9
41.6
1047.5
18.8
12056.4
18.8
1300.7
17.0

9M
Equity
PAT
PAT
Face
PAT
dividend
Equity Value
CMP
FY14 Q4FY14E ( FY14E (|
%
(| cr)
| cr)
cr)
(| cr)
(|)
(|)
FY13
72.7
24.2
96.9
53.85
10 103.6
50
207.6
69.2
276.9 155.42
10
74.1
35
969.8
323.3 1293.1 4136.62
10
20.7
9.6
152.4
50.8
203.3
88.2
10 118.8
55
126.0
42.0
168.0
39.08
2
80.6
175
1014.3
338.1 1352.4 544.61
10
82.0
60
113.1
37.7
150.7
69.21
10 121.7
50
98.3
32.8
131.0
15.44
10 1590.0
625
193.7
64.6
258.3 254.76
10 284.4
100
153.8
51.3
205.0
49.77
5 143.6
100
158.2
52.7
210.9
55.1
10 461.1
160
420.0
140.0
560.0
84.61
5 522.6
460
931.9
310.6 1242.5
48.48
10 1525.0
500
382.9
127.6
510.5 134.39
1
22.0
70
96.9
32.3
129.2
47.64
2
57.1
89
114.0
38.0
151.9
124.1
10 196.0
55
1045.5
348.5 1394.0 1888.93
10 203.3
55
264.8
88.3
353.0 275.28
10
41.7
26.8
182.3
60.8
243.1 296.01
10
63.1
16
2171.8
723.9 2895.7 642.26
10 199.1
100
400.4
133.5
533.8
54.73
5 289.7
140
40.0
13.3
53.3
19.83
2
93.5
110
2995.4
998.5 3993.8 216.26
1 559.4
1850
2479.4
826.5 3305.9 289.37
10 1964.3
450
1544.7
514.9 2059.7 1516.22
10 113.6
26
191.2
63.7
254.9
30.09
10 1182.6
250
168.7
56.2
224.9
60.67
10 408.2
85
263.7
87.9
351.6
54.27
1
49.5
100
269.8
89.9
359.7
140
10 272.9
55
95.6
31.9
127.4 108.61
10 149.5
70
164.8
54.9
219.7
98.06
10 367.5
70
33.1
11.0
44.1
17.99
2 169.0
159
134.7
44.9
179.5
20.62
10 557.0
200
132.6
44.2
176.8
17.78
1 123.0
220
70.2
23.4
93.5
88.78
10 235.0
42
497.6
165.9
663.4
63.65
10 342.9
60
99.4
33.1
132.5
30.69
2
87.9
75
150.1
50.0
200.1
75.53
1
26.8
90
947.2
315.7 1262.9 100.93
2 227.5
190
9396.4
3132.1 12528.5 1910.9
10 329.5
115
1187.6
395.9 1583.4 360.63
10 365.3
60

Source: Capitaline, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research

Equity
Expected
dividend Interim
% dividend
dividend %
FY14E
(%) Expected based on
(based on declared dividend % last year
dividend till date based on dividend
payout) for FY14 payout %
(%)
60
60
50
37
37
35
13
13
10
92
92
55
239
239
175
66
25
41
35
88
88
50
746
746
625
46
46
100
110
110
100
231
231
160
320
100
220
360
613
613
500
73
73
70
117
117
89
67
67
55
101
101
55
28
16
12
11
17
17
16
102
50
52
50
278
278
140
134
134
110
2327
550
1777
1300
524
524
450
30
30
26
402
402
250
91
91
85
98
98
100
58
58
55
72
40
32
30
75
75
70
209
209
159
429
100
329
100
271
271
220
44
44
42
129
129
60
76
76
75
110
45
65
45
235
235
190
123
60
63
55
75
75
60

Expected
dividend
Yield (%)
based on
payout %
5.8
5.0
6.1
7.7
5.9
4.9
7.2
4.7
1.6
3.8
5.0
2.1
4.0
3.3
4.1
3.4
5.0
3.0
2.7
2.6
4.8
2.9
3.2
2.7
2.7
3.4
2.2
2.0
2.1
2.1
2.0
2.5
5.9
2.2
1.9
3.8
1.7
2.4
2.1
1.9
2.0

Expected
dividend
yield
based on
last year
dividend %
4.8
4.7
4.6
4.6
4.3
4.3
4.1
3.9
3.5
3.5
3.5
3.4
3.3
3.2
3.1
2.8
2.7
2.6
2.5
2.5
2.4
2.4
2.3
2.3
2.3
2.1
2.1
2.0
2.0
2.0
1.9
1.9
1.8
1.8
1.8
1.7
1.7
1.7
1.7
1.7
1.6

Pankaj Pandey

Head Research

pankaj.pandey@icicisecurities.com

ICICIdirect.com Research Desk,


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

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ICICI Securities Ltd | Retail Equity Research

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