The broader market continued its fall on Thursday but recovered from the lows before the closing, ending 0.08% up at 16,985. As the panic is still there, it might be a good idea to keep some of the high dividend-paying stocks on the radar. To capitalize on this dip, here’s a list of some of the good ones with their nearest demand zone.
Petronet LNG Limited
Petronet LNG Ltd (NS:) is a midcap company engaged in the import and re-gasification of liquefied (LNG) and has a market capitalization of INR 33,832 crores. A few days back, the stock had already delivered a breakout on the daily chart, making it a good bet for capital appreciation as well. The current dividend yield of the stock is 5.1%. From the earnings perspective, it is trading at a single-digit TTM P/E of 9.67, making it quite lucrative. The retest of the breakout level of INR 230 is where left-out investors are expected to kick in.
Coal India Limited
Coal India Ltd (NS:) has almost a monopoly in India in the coal mining sector and has a market capitalization of INR 1,36,073 crores. The company posted record revenue of INR 1,13,618 crores in FY22 which translated into a profit of INR 17,358.1 crores. It is trading at a dividend yield of 7.7% and a TTM P/E ratio of a mere 4.64. The strong support level of INR 210 is a good level to accumulate the stock.
REC Ltd (NS:) (formerly, Rural Electrification Corporation Limited) is a Maharatna company with a market capitalization of INR 31,506 crores. It is in the business of providing financial services to the entire power sector. This is one of my personal favorites and is currently trading at a dividend yield of 9.59%, despite a 26.6% rally in the last one year. As the stock has risen a lot, waiting for a dip to the demand zone of INR 112 – INR 110 would be a good decision.
Diversified natural resources company, Vedanta Ltd (NS:) with a market capitalization of INR 1,03,406 crores is the highest dividend-paying stock in its space, with a current dividend yield of 16.19%. The recent sell-off in the metal space has also thrown it off its highs and a level of INR 260 would a good one to deploy cash toward this dividend machine.
Disclosure – I hold REC shares in my portfolio.
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