Dividends, which are paid out regularly from company profits, provide tangible returns to shareholders. Their consistency, particularly in mature industries, can provide stability, and the yield, calculated as dividend per share divided by stock price, serves as an immediate income indicator.
Here are some midcap stocks with high dividend yields.
IDFC Ltd
IDFC Limited was founded in 1997. It is a Reserve Bank of India-regulated Non-Banking Finance Company (NBFC). It maintains investments in IDFC FIRST Bank and IDFC AMC.
IDFC Ltd has a dividend yield of 15.2 percent; this year, IDFC paid a dividend of Rs 11 in February approximately 8 percent to the current market price. This is a mid-cap stock with a market capitalization of Rs 20,270.
Compared to its competitors, the company’s price-to-earnings ratio is low at 4.8, its debt-to-equity ratio is zero, its return on equity is higher at 6 percent, its return on capital employed is at 10 percent, and its net profit margin is 437 percent higher than it was in prior years.
On Friday the share price closed 0.12 percent down at Rs 123.50 from its previous close of Rs 123.65. The share price has risen by 25 percent in the last six months and 46 percent in the year to date.
Looking at the financials, the net revenue decreased by 25 percent year over year, from Rs 49.38 crore in Q2FY23 to Rs 36.67 crore in Q2FY24. In addition, the company’s net profit fell by 46 percent year over year, from Rs 44.59 crores in Q2FY23 to Rs 24.01 crores in Q2FY24.
Oil India Ltd
Oil India Ltd is involved in the exploration, development, and production of crude oil and natural gas, as well as crude oil transportation and LPG production. It also offers various E&P services for oil blocks.
Oil India Limited has a dividend yield of 8 percent, this year Oil India paid dividends three times in total of Rs 19 which is approximately 5 percent of the current market price.
The company is midcap with a market capitalization of Rs 36,970 crores the share price rose 36 percent in the last six months and 60 percent in the year to date. On
Friday the share price closed 1.13 percent down at Rs 372.10 per share from its previous close of Rs 376.35 per share.
Oil India Ltd has a low price-to-earnings ratio of 6 compared to its peers, also it has a low debt-to-equity ratio of 0.48 with a return on equity ratio of 28 percent, a return on capital employed of Rs 27 percent and a net profit margin of 24.
The net revenue of the company has decreased by 25 percent year over year, from Rs 10,123 crore in Q2FY23 to Rs 8,816 crore in Q2FY24. In addition, the company’s net profit fell by 59 percent year over year, from Rs 1,728 crores in Q2FY23 to Rs 694 crores in Q2FY24.
Petronet LNG Ltd
Petronet LNG Ltd was established to develop, design, build, own, and operate LNG import and regasification terminals in India. It was formed in 1998 as a joint venture with GAIL, Indian Oil, Bharat Petroleum, and ONGC each holding 12.5 percent.
Petronet LNG Limited has a dividend yield of 4.3 percent this year, the company has paid dividends twice in total of Rs 10 which is 4.6 percent to the current market price.
The share price of the midcap company has a market capitalization of Rs 32,410 crores, on Friday the share price closed 1.44 percent up at Rs 214.50 per share from the previous close of Rs 211.45 per share.
The price-to-earnings ratio of 9 is lower than its peer companies, it also has a low debt-to-equity ratio of 0.02 with a return on equity of 23 percent, a return on capital employed of 32 percent, and a net profit margin of 5.5 percent.
Looking at the financials, the net revenue decreased by 21 percent year over year, from Rs 15,985 crore in Q2FY23 to Rs 12,532 crore in Q2FY24. In addition, the company’s net profit rose by 10 percent year over year, from Rs 737 crores in Q2FY23 to Rs 814 crores in Q2FY24.
Written by Sriram KV
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