3 High Dividend Stocks to Watch for as the Market Falls! | Popgen Tech
Since the broader market has been going through a nice correction for the last few sessions, it’s the right time to put your favorite dividend stocks on the watch list to pull the trigger when the time. Whenever you buy a high dividend-paying stock after a decent drop in price, its yield tends to shoot up, providing investors with a better proposition.
Capitalizing on these market-wide corrections makes a good impact if you want to build a good dividend portfolio. In that vein, here are 3 high dividend paying companies that should be put on the watch list.
PTC India Limited
PTC India Ltd (NS:) is engaged in the business of energy trading and investment, having a market capitalization of INR 2,311 crores. It is trading at a very low P/E ratio of 4.57, which makes it a decent value proposition, and not to forget a P/B ratio of a mere 0.42. The stock is trading at a mouth-watering dividend yield of 9.99% and the company has never exceeded its dividend payout in over a decade.
The dividend per share (DPS) has been rising consistently, from a mere INR 2 per share in FY14 to INR 7.8 per share in FY22. Over the last three years, management has maintained a payout ratio of more than 0.4, meaning more than 40% of net profit has been distributed in the form of dividends to shareholders.
PNB (NS:) Gilts Limited
PNB Gilts Ltd (NS:) primarily deals in government securities and was licensed by the RBI for the same in 1996. It has a market capitalization of INR 1,134 crores and the stock trades at a Pdividend yield of 7.93%. It is also quite consistent in paying dividends over the last many years and the FY22 payout ratio jumped to 0.54, which is quite good.
The stock has practically gone nowhere for the last 1.5 years, so it may not be suitable for capital appreciation, but the regular cash flow in the form of dividends is what appeals to investors towards this bank.
IRB InvIT fund
IRB InvIT Fund (NS:) is actually a trust with a market capitalization of INR 3,730 crore that generates its primary income from toll collection. It has 6 toll road assets in the country, operated and maintained under concessions granted by NHAI. The stock trades with a 14% dividend yield which makes it too good to ignore.
Apart from a dividend of INR 9 per share in FY22, the stock has also delivered a good capital appreciation of 20.4% in the last year. Being a toll collection business, the cash flows are fairly consistent and this leads to regular dividend payments.