The “Dividend Yield”, usually expressed as a percentage, is a financial ratio depicting how much a company pays out in dividends annually compared to its stock price.
Listed below are three stocks with high dividend yield that one could add to their watchlist for a potential upside of up to 25 percent:
Hindustan Unilever Limited
With a market capitalization of Rs 5.24 lakh crores, the stocks of Hindustan Unilever Limited (HUL), one of the well-known FMCG companies, started their trading session on Thursday at Rs 2,209.95 and currently trade at Rs 2,231.35, a flat movement compared to the previous close of Rs 2,230.70 apiece. The company’s dividend yield stands at 1.90 percent.
Recently, BOB Capital Markets initiated coverage on the stocks of HUL with a ‘Buy’ recommendation and gave a target price of Rs 2,617 indicating a potential upside of 18 percent compared to the prevailing share price level.
The rationale for providing such an aggressive target price pertains to the company strengthening its core portfolio via the launch of new products across segments. The Brokerage mentioned that the FMCG company could face a recovery in volumes by H2FY25 based on the turnaround of consumer sentiment and good monsoon.
Glenmark Life Sciences Limited
With a market capitalization of Rs 10,324.14 crores, the stocks of Glenmark Life Sciences Limited, one of the leading developers and manufacturers of select high-value APIs, started their trading session on Thursday at Rs 831 and currently trade at Rs 842.60, gaining approximately 1.60 percent compared to the previous close of Rs 829.10 apiece. The company’s dividend yield stands at 2.70 percent.
Recently, ICICI Direct initiated coverage on the stocks of Glenmark Life Sciences Limited with a ‘Buy’ recommendation and gave a target price of Rs 1,040 indicating a potential upside of 24 percent compared to the prevailing share price level.
The rationale for providing such an aggressive target price pertains to the company’s significant presence in chronic therapies and initiatives of the management to accelerate business with consistent deal wins.
The pharma company also targets to double its “Contract Development and Manufacturing Organization” (CDMO) business by 2027 by leveraging its existing partnerships and adding new projects.
HCL Technologies Limited
With a market capitalization of Rs 3.70 lakh crores, the stocks of HCL Technologies Limited, one of the well-known IT services companies, started their trading session on Thursday at Rs 1,359.90 and currently trade at Rs 1363.65, slipping approximately 0.30 percent compared to the previous close of Rs 1,367.55 apiece. The company’s dividend yield stands at 3.80 percent.
Recently, Motilal Oswal initiated coverage on the stocks of HCL Technologies Limited with a ‘Buy’ recommendation and gave a target price of Rs 1,700 indicating a potential upside of 25 percent compared to the prevailing share price level.
The rationale for providing such an aggressive target price pertains to the guidance on EBIT margin of 18-19 percent provided by the management and significant consolidation opportunities at the enterprise level.
Written by Amit Madnani
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