Indian share market is volatile with India VIX (volatility index) at over 16. Amid the ongoing uncertainty, high-dividend yield stocks could be an option for stock market investors.
Dividend yield is an indicator of the return that investors are earning on their shares. In general, a high dividend yield stock provides regular income.
Anil Agarwal-led Vedanta delivered a dividend of Rs 81 per share with the highest dividend yield of 28.6% in last 12 months, according to Axis Securities. Hindustan Zinc is second with a dividend yield of 16.1% at dividend of Rs 49.5 in last one year.
Coal India, with a dividend yield of 10.5%, announced a dividend of Rs 23.30 in the past 12 months and is in third position. ONGC came in at number four with a dividend yield of 9.2%.
Indus Towers, GAIL India, SAIL, PowerGrid, Piramal Enterprises, Tata Steel, HCL Tech, Tech Mahindra, Hero MotoCorp, NTPC and Bharat Electronics are other top dividend yield stocks in the list.
Other PSU stocks with high dividend yields included REC Ltd, Balmer Lawrie Investment, HUDCO, Rites, PFC, HPCL, SJVN and IRFC.
Aside from these 15 stocks highlighted by Axis Securities, ITC is another high dividend yield stock which has a track record of giving good dividends in last five years.
High dividend yield stocks are considered safer than low dividend yield stocks. If the market falls, these stocks will offer a higher yield to investors due to higher dividend payouts.
Aside from dividend yield, investors have to focus on the track record of the company in terms of dividend payout before investing in such stocks. Try to understand whether the company will be able to maintain the dividend even when profit is falling.
The content in the story is for information purposes only. Investors or market participants should consult their financial advisors before taking any position