The “Dividend Yield”, expressed as a percentage, is a financial ratio showing how much a company pays out by way of dividends each year compared to its stock price. Generally, companies in their mature stage, that aren’t growing very quickly, report the highest dividend yield percentages.
Listed below are three such high dividend-yielding stocks that one should add to their watchlist for a potential upside of more than 30 percent:
Nippon Life India Asset Management Limited
With a market capitalization of Rs 29,152.29 crores, the stocks of Nippon Life India Asset Management Limited, engaged in managing mutual funds including exchange-traded funds (ETFs), opened their trading hour on Wednesday at Rs 503.25 and currently trade at Rs 463.20, slipping approximately 6.20 percent as compared to the previous closing price of Rs 493.75 apiece.
Prabhudas Lilladher gave a ‘Buy’ recommendation on the stocks of Nippon Life India Asset Management Limited with a target price of Rs 610 indicating a potential upside of around 32 percent compared to the prevailing share price level. The company showcases a dividend yield of nearly 2.30 percent.
The rationale behind providing such a recommendation pertains to bolstering of the investment process and risk management processes, strong core earnings growth led by operating leverage, and many more.
NTPC Limited
With a market capitalization of Rs 3.11 lakh crores, the stocks of NTPC Limited, primarily engaged in the generation and sale of bulk power to state power utilities, opened their trading hour on Wednesday at Rs 343.35 and currently trade at Rs 321.20, slipping approximately 7 percent as compared to the previous closing price of Rs 344.85 apiece.
Sharekhan gave a ‘Buy’ recommendation on the stocks of NTPC Limited with a target price of Rs 425 indicating a potential upside of around 33 percent compared to the prevailing share price level. The company showcases a dividend yield of nearly 2.10 percent.
The rationale behind providing such a recommendation pertains to the aggressive growth in the renewable energy portfolio, robust thermal capacity addition plan, and many more.
Oil India Limited
With a market capitalization of Rs 61,859.89 crores, the stocks of Oil India Limited, engaged in the exploration, development, and production of crude oil and natural gas, etc, opened their trading hour on Wednesday at Rs 618.05 and currently trade at Rs 570.45, slipping approximately 7 percent as compared to the previous closing price of Rs 613.10 apiece.
Sharekhan gave a ‘Buy’ recommendation on the stocks of Oil India Limited with a target price of Rs 755 indicating a potential upside of around 34 percent compared to the prevailing share price level. The company showcases a dividend yield of nearly 3.30 percent.
The rationale behind providing such a recommendation pertains to the expectations for the core ‘E&P’ business to benefit from higher oil & gas production and many other factors.
Written by Amit Madnani
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