Good Dividend Yield (Sustainable) stocks
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Fundamental
Forum Discription: Discuss the operations and finances of any of your companies.Make the other participants aware on the investment opportunities available in a stock on PE free cash flow etc
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1889
Printed Date: 27/Apr/2024 at 9:25pm
Topic: Good Dividend Yield (Sustainable) stocks
Posted By: omshivaya
Subject: Good Dividend Yield (Sustainable) stocks
Date Posted: 31/Aug/2008 at 1:21am
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I chanced upon a list of high dividend-yield stock list that ICICI was presenting. Here it is as follows:
Co_Name Ex Date Dividend % FV(Rs) CMP Div. Yield (%) JK Paper 13/08/2008 15% 10 32.6 4.6 V I P Inds. 14/08/2008 30% 10 74.45 4.0 Bongaigaon Ref. 20/08/2008 50% 10 67.3 7.4 Banco Products 21/08/2008 70% 2 32.3 4.3 Wyeth 22/08/2008 300% 10 479.65 6.3 Indiabulls Real 27/08/2008 675% 2 312.85 4.3 Indiabulls Sec 27/08/2008 375% 2 72.05 10.4 Entire list at: http://www.icicidirect.com/mailimages/ICICIdirect_dividendYieldStocksII.pdf - http://www.icicidirect.com/mailimages/ICICIdirect_dividendYieldStocksII.pdf
My note: I was particularly suprised by IndiaBulls sec's dividend yield being 10.4%. Dunno whether it is sustainable or not?
We can have in this thread a list of stocks that are likely to grow at a rate of greater than 15% and have are likely to have a dividend yield of minimum 2% over the next many years. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Replies:
Posted By: manishdave
Date Posted: 31/Aug/2008 at 2:54am
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Interesting thread at present time. Better will be those who can and probably will increase dividends.
Bongaigaon Ref yield is actually 10% at current price. But there is a catch. Merger with IOC is pending and ratio at current price is not favourable to Bongaigaon. But then it is pending since 2 years and not likely to happen before election. I don't know sebi rule abt validity of of 2-3 years ratio. At stand alone bong. has a moat. They process crude from Assam closed to production. Other refineries are far and new refinery can not be supported there. So no growth but good cash flow and not much debt. They don't do marketing themselves so less problems from govt. But again merger is uncertainity. Balmer Lawrie investment may give 8-10% yield next year from current stock price.
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Posted By: Mohan
Date Posted: 31/Aug/2008 at 4:50am
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Div Yield in India Bull SEC has been declared its Div of Rs 7.50 / share on Apr 28 2008. Div is expected to be distributed after the AGM on Sept 5 2008. It seems to be a one off thing. Don't expect it to be repeated next year. ------------- Be fearful when others are greedy and be greedy when others are fearful. |
Posted By: prashantmohta
Date Posted: 31/Aug/2008 at 9:35am
| omji, r u sure indiabull will maintain this dividend next year. |
Posted By: rakeshmehta48
Date Posted: 31/Aug/2008 at 9:58am
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Om Ji
Varun Shipping is paying Rs 5 dividend per share. At MP of 67 dividend yield works out close to 7.50%
Company has grown at decent pace during past 3-4 years.
Future growth should be higher than 15% ------------- Fund Management is Most Important |
Posted By: rakeshmehta48
Date Posted: 31/Aug/2008 at 10:07am
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Ultramarine is giving Rs.3 dividend on 37.
Yield is above 8%
Company has some bonus history in the past.(1987 1:1, 1995 1:1, 2003 3:5)Looks very reasonable at this price. Downside looks cushioned.
But I don't have much idea about future growth. ------------- Fund Management is Most Important |
Posted By: Vivek Sukhani
Date Posted: 01/Sep/2008 at 12:02pm
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This list is incomplete without stocks like hawkins and castrol.......
------------- Jai Guru!!! |
Posted By: rakeshmehta48
Date Posted: 01/Sep/2008 at 12:22pm
and many more ------------- Fund Management is Most Important |
Posted By: bassein
Date Posted: 01/Sep/2008 at 1:31pm
Another of Vivekji's stocks is on fire! Castrol  .Looks like it's in a new orbit! |
Posted By: omshivaya
Date Posted: 01/Sep/2008 at 1:42pm
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Prashant jee, I dunno if Indiabulls' dividend is sustainable!! Thanks everyone for their inputs. Keep adding to the div. yield list from time to time, so that people following div. yields can be helped with the info. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: paragdesai
Date Posted: 01/Sep/2008 at 1:58pm
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http://www.moneycontrol.com/india/stockmarket/topdividentstock/13/10/marketstatistics/BSE -
This is very good link I came across to find Div Yield Stocks
Please check face value of stock before blindly going for it.
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Posted By: bassein
Date Posted: 01/Sep/2008 at 2:38pm
Yes. Face value is so important. I wish a convention of announcing dividend per share, rather than dividend %, was consistently followed. |
Posted By: Vivek Sukhani
Date Posted: 01/Sep/2008 at 1:16am
Well, it has started to perform at a wrong time though....
There is a thing called peaking at the right time.....something like what a BASF did for me....it started to shoot up when everything else was falling in a heap thereby permitting me to do some sharp trades. All my gains were long term capital gains totally tax free and I was enjoying selling BASF. A castrol on the other hand performed a lot earlier than what I was expecting and more importantly,desiring, and hence disappointing.
I hardly complain about non-performance because I utilise that period for accumulation....something like a Voith Paper I have been accumulating for 2 years now albeit I am getting aggressive only now. Similar is the case with Ultramarine and Century Enka.
For me its like this....I keep a bundle of stocks and I would like just 1 or 2 bundle to perform well enough in a year's time-frame to allow me to swap into something else which I am finding more attractive. I am more happy to see my stocks maturing slowly rather than in a hurry. ------------- Jai Guru!!! |
Posted By: pramodjain
Date Posted: 02/Sep/2008 at 12:15pm
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IGL is a good dividend yield stock ------------- "We simply attempt to be fearful when others are greedy, and greedy only when others are fearful." |
Posted By: rakeshmehta48
Date Posted: 02/Sep/2008 at 4:59pm
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Chennai Petro has given Rs.17 as dividend. At CMP of Rs.260 dividend yield is 6.54%
Profit growth in the recent past is explosive. TTM EPS is 100+
In future it may not sustain that type of growth. GRM has come down drastically and the sector is also not liked/fancied. Nonetheless dividend yield in this stock should always be attractive. ------------- Fund Management is Most Important |
Posted By: master
Date Posted: 02/Sep/2008 at 10:25pm
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Chennai petro finds place in Citi's list of most attractive stocks in the Global/EM list. I don't track the company, so can't comment. Some 5 Indian stocks are mentioned there. ------------- Someone’s sitting in shade today because someone planted a tree long time ago. |
Posted By: omshivaya
Date Posted: 02/Sep/2008 at 10:58pm
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On a sidenote, the focus should strongly be on companies
1) that will be able to increase its dividend each year consistently, by 15% or above.
2) that will be able to increase its stock price by 15% or above for lot many years.
Point (1) would take care of steady income to manage expenses and point (2) would take care of a retirement kitty when the retirement arrives. HDFC BANK has been able to deliver on point 1 and 2 over the past 10 years. ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: manishdave
Date Posted: 10/Sep/2008 at 2:10am
| Andhra Sugar yield is abt 5%. And sugar prospects are getting much better so EPS/Div should go up. |
Posted By: basant
Date Posted: 10/Sep/2008 at 7:38am
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A friend of mine has a big stake in this one.But from what he keeps saying Andhra Sugar is not just sugar!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: gcpradhan1
Date Posted: 11/Sep/2008 at 8:06pm
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Can we consider HCL Infosystems as a good dividend earning stock? Last few year data what I got from Moneycontol is as follows. HCL Info : CMP Latest Div% Div Yeild% @ 52 High 52 Low Current FV 107 400% 2.76% 7.51% 7.48 2 It is paying dividend regularly since 2004 in the range of 100 - 400% every year. Seniors please advice ! ------------- Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years - Buffet |
Posted By: rapidriser
Date Posted: 11/Sep/2008 at 8:42pm
Andhra Sugars is a diversified company manufacturing commodities like Sugar, Alcohol, Chlor-Alkali & Fertiliser (Superphosphate). Prices of their products have risen in line with the overall trend of higher commodity prices worldwide.
The main concern is that prices of commodities have peaked at least for the time being and we may see an intermediate term decline in their product prices. You can enter this scrip if you are bulish on commodity prices in the long term, but I would advise you to wait for some time, before taking a large position.
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Posted By: manishdave
Date Posted: 11/Sep/2008 at 11:27pm
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It is true that Andhra sugar is not Just sugar. That has helped company survive the sector carnage last year.
Company is value at any parameter and sugar is losig money. Sugar is going to be big turnaround so earning should improve and so should dividend.
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Posted By: nav_1996
Date Posted: 11/Sep/2008 at 12:42pm
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HCL:
On dividend basis it looks attractive. But its main biz laptops/PCs will see intensive competition. |
Posted By: basant
Date Posted: 11/Sep/2008 at 6:44am
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SOmeone mentioned about Indiabulls Sec and its 10% dividend yield but with deteriorating business fundamentals the dividend would not be sustained so investing on the basis of dividend only is like driving a car by looking at the rearview mirror!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: manishdave
Date Posted: 11/Sep/2008 at 8:21am
This is most important aspect in investing. Investing on basis of dividend or otherwise. For example Fannie mae yield is 20%. But that is past.
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Posted By: Vivek Sukhani
Date Posted: 11/Sep/2008 at 9:43am
Thats true for anything done on the basis of historical figures, be it dividend or growth.
Those who play this game know how to play this game. We very clearly prioritise that when going for yield, our first preference is Multinational corporations and Public Sector Enterprises. If we have to get into private sector, we get into the track record and never trust a company which doesnt have a 5 year track record.
Also, dividend is just one of the parameters, albeit an important parameter. Everybody on this earth knows that for a more or less comparable yield, its better to be in an ONGC than to be in an Tata Steel. ------------- Jai Guru!!! |
Posted By: omshivaya
Date Posted: 12/Sep/2008 at 12:20pm
Hence the title of the this thread, which reads "sustainable". ------------- The most important quality for an investor is temperament,not intellect.A temperament that neither derives great pleasure from being with the crowd nor against it |
Posted By: bassein
Date Posted: 12/Sep/2008 at 12:50pm
Noted  . The IndiaBulls dividend was clearly a one-off, if not an out-and-out gimmick. |
Posted By: gcpradhan1
Date Posted: 12/Sep/2008 at 2:28pm
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I think HCL info has maintained its dividend history since last 5 years without any exception. Although the IT HW sector in India is getting very compitive, but considering the current stock price does not command to be a good dividend yeilding stock. ------------- Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years - Buffet |
Posted By: investor
Date Posted: 12/Sep/2008 at 2:42pm
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PNB Gilts also has a 15% dividend - Re 1.50 per share, ex-date is September 18th. CMP is around 25.
------------- The market is a place where people with money meet people with experience. The people with experience get the money while people with money get experience! |
Posted By: bassein
Date Posted: 13/Sep/2008 at 7:11pm
| LIC Housing Finance, if it becomes slightly cheaper, may also be a good candidate. Its last dividend was 100% (FV = Rs. 10). CMP 313.10. |
Posted By: Mr. V
Date Posted: 13/Sep/2008 at 10:50pm
| Surprising that GE Shipping hasn't been mentioned. 5% yield and appears to be sustainable. |
Posted By: valueman
Date Posted: 14/Sep/2008 at 2:06pm
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GAIL after bonus is over will also be a good dividend candidate .As it is it is giving Rs.10 per share and after ex-bonus the price might come to Rs.300 levels and it is a good dividend yield at that time .The dividends keep increasing and are likely to increase further .
------------- To achieve satisfactory investment results is easier than most people realize ; to achieve superior results is harder than it looks . Benjamin Graham. |
Posted By: Vivek Sukhani
Date Posted: 14/Sep/2008 at 3:27pm
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Dividend will also become 7-8 rupees a share.
If dividend is what is being considered, then in this space, ONGC is far better a bet compared to a GAIL. ------------- Jai Guru!!! |
Posted By: praveen
Date Posted: 15/Sep/2008 at 6:33pm
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Balmer Lawrie Div at Rs 17 at CMP of 365 at div yield of ~4.7%
Royal Orchid Hotels Div at Rs 6 at CMP of 75-80 at div yield of ~7.5%
Zf steering Div Yield at Rs 8 at CMP of 160 at Div yield of ~5%
------------- The quest for knowledge is a never ending Journey |
Posted By: TCDS
Date Posted: 16/Sep/2008 at 4:11pm
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A very good stock is missing from this list with a very good history of dividend
Mar 08 2070%
Mar 07 225%
Mar 06 1300%
Mar 05 230%
Mar 04 200%
Monsanto ind.
And if rumors are beleived then they are going to give bonus for third quater also. pls do ur R&D on same.
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Posted By: praveen
Date Posted: 16/Oct/2008 at 5:16pm
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Any discussion on dividend yield is meaningless without mentioning the payout ratios ------------- The quest for knowledge is a never ending Journey |
Posted By: jain208
Date Posted: 16/Oct/2008 at 6:57pm
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ICICI Direct has come up with a list of stocks which have a stable dividend payment record and are trading below their book value. I have the pdf but that cannot be uploaded here. If anyone wants the pdf, PM me your email address.
Abhishek. ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: Hitesh Shah
Date Posted: 16/Oct/2008 at 9:22pm
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Data courtesy Abhishek:
The recent downtrend in the stock markets is posing challenges to investors looking for safe returns. The carnage in the market has led to erosion of market capitalisation of even fundamentally strong companies with a consistent financial performance and investor wealth creation track record. We have identified companies, which have a stable dividend payment record and which are trading below their book value. Such stocks offer a safe haven to investors where safety is of greater priority compared to high returns.
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Posted By: Rinku
Date Posted: 16/Oct/2008 at 9:42pm
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Ultramarine at 29 - 30.dividend payout 3 Rs.div yeild 10%
and as market falls Div yeild increases.
But looks like this is pure value play no growth whatsoever from last 4-5 years.
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Posted By: Vivek Sukhani
Date Posted: 16/Oct/2008 at 9:16am
Ultramarine has exposure to detergenets and surfactants business, which is perhaps the most penetrated of all FMCG personal care/cloth care segments. So, getting growth is not easy ina segment which is becoming a mature sector.
However, this company is exploring new geographies and that should aid the company. I am expecting good growth in external geographies.
Ultramarine is an unattractive play, you need to build that into your value game, whenever you are playing it. Its nota fancy business, but somehow i think we should be considering this stock price now as L2 purchase point.
However, my final advice will still be to convert your way through rather than committ funds. Most of us have extremely well diversified portfolio, and we can always have opportunities to exit in some and get into something else.
Till the point we dont get 8 p.c yield after having factoring in a 33.33 p.c. reduction in last dividend declared, we shall avoid putting cash. Thats a thumb rule, I follow.
So, for Ultramarine, we shall assume a DPS of 2/3*3=2 coins a ticket as dividend.
Therefore, ideal L3 price =2/8*100=25 rupees a ticket. ------------- Jai Guru!!! |
Posted By: Ajax
Date Posted: 17/Oct/2008 at 12:57pm
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Dear Vivek,
Can u please explain what do we mean by L1 , L2, L3 purchase price?
Thanks
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Posted By: Vivek Sukhani
Date Posted: 17/Oct/2008 at 8:53am
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L1, L2, L3 are my purchasing levels. I keep a trading plan for all my active stocks. Some are technically derived, some are fundamentally derived..... ------------- Jai Guru!!! |
Posted By: pramodjain
Date Posted: 18/Oct/2008 at 3:28pm
------------- "We simply attempt to be fearful when others are greedy, and greedy only when others are fearful." |
Posted By: Hitesh Shah
Date Posted: 18/Oct/2008 at 3:37pm
What you mean by "payout ratio"? Is it % of profit paid as dividend? Please clarify. ------------- |
Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 4:10pm
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I dont think, payout ratio is all that important, until and someone proves otherwise to me. ------------- Jai Guru!!! |
Posted By: paragdesai
Date Posted: 18/Oct/2008 at 4:54pm
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Pay out ratio has no importance unless there is special dividend. If we calculate dividend yield on that basis one may be misguided. Though it can be useful to read the mind of management. Also watch out for Face Value of the share if you find the dividend in terms of %. |
Posted By: paragdesai
Date Posted: 18/Oct/2008 at 8:11pm
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http://economictimes.indiatimes.com/Markets/Analysis/Rich_dividends_for_investors_in_slowdown_season/articleshow/3610892.cms -
Vivekji,
Some Interesting Statistics for you.
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Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 8:27pm
hehehe.......I just got a note from my dad that reduce current year DPS by 50 p.c and estimate next year's dividend receipt and plan how to match the gap......I am so damn confused as to how to go about this exercise...
------------- Jai Guru!!! |
Posted By: paragdesai
Date Posted: 18/Oct/2008 at 8:30pm
| So as per your estimate Next year dividend may reduce by 50%? |
Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 8:39pm
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Thats as per my dad.......In my opinion, some firms may increase dividend as well, some will retain their current DPS but some are either going to reduce or skip dividends as well. the number of companies slashing/skipping may outnumber those keeping it constant/increasing it, by a massive margin.
Some commodity stocks, some marginal dividend payers may be the culprits. Thats why, I am saying that yield mongers need to recalculate their DPS and also increase expected yield before chasing any yield stock.
My scheme is to reduce current year' dividend per share by 1/3, and go for a stock, if and only if, at the reduced DPS, the stock is offering you 8 p.c. individual investors can reduce the DPS estimate by more than 1/3, at their individual discretion, and can even consider a skip scenario.
For yield stocks, also avoid paying more than 4-5 times cash earnings, and try to get them at a 40 p.c discount to reported book value, after eliminating all revaluation reserves. also, add any contingent liabilities, to further enhance the Margin of Safety.
------------- Jai Guru!!! |
Posted By: paragdesai
Date Posted: 18/Oct/2008 at 8:56pm
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I don't want to contradict to you but if you ignore any commodity stock & consider commodity using stock their margin can be improved dramatically (provided not gone through forward contract) despite having lower on sales side by few % due to slowdown many of them should maintain their net profit level. Due to uncertainty going forward they may reduce pay out ratio, |
Posted By: Hitesh Shah
Date Posted: 18/Oct/2008 at 8:56pm
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I feel "dividend mongers" will be smiling even if they suffer for a couple of years because the current fall in share price compensates for quite a few missed / reduced dividend pay-out!
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Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 9:03pm
I agree there.......therefore, i am quite bullish on lubricants, tyres, plastic pipes, paper, select chemicals, crop care, tea, select logostics, PSUs in general, MNCs in general.
Actually, this is a period when we intended to buy and what we intended to sell, both have fallen. So, net net, we are neither better off but nor worse off. Perhaps, this is the best time to churn to safety and creation of extremely durable portfolio. The only hitch is that some FMCG stocks are holding out way too strongly to give you that churning opportunity. ------------- Jai Guru!!! |
Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 9:06pm
Dividend mongers never feel missed out. We will not buy anything if we have to over-pay.
Perhaps, the only mistake that I have made this time is that I compromised on my principles in some cases, where I should have adhered to my core rules. I went for less than 3.5 p.c.p.a stocks, and that was a shame for me. ------------- Jai Guru!!! |
Posted By: praveen
Date Posted: 18/Oct/2008 at 9:27am
Its helps you to judge the quality of the dividend paid. Say if a company is just paying 25%-35% of its profits as dividends and retaining the rest then even if the profits go down by 50% in the next year, in all likelihood it would retain its dividend level. So while contemplating investment in such companies you might miss out using your rule of thumb. Pay-out ratio tells you about the robustness of the dividends paid. ------------- The quest for knowledge is a never ending Journey |
Posted By: Vivek Sukhani
Date Posted: 18/Oct/2008 at 9:41am
Very similar to what one of my friend says....she uses a EPS/DPS measure to make her future forcast regarding dividend.
Actually, I get that thing in my head without getting into measures.
Nonetheless, for a pure student of modelling/science, it can be considered....... ------------- Jai Guru!!! |
Posted By: Hitesh Shah
Date Posted: 19/Oct/2008 at 1:05pm
At least two companies, L&T and Praj, have defined dividend pay-out policies available on their web-sites. ------------- |
Posted By: Nitesh_Inc
Date Posted: 19/Oct/2008 at 6:11pm
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Great Eastern Shipping Company Ltd
Dividend 150% or Rs.15 / share Book Value Rs.273.02 Current Market Price Rs.201.00 Price/Book Value 0.73 Equity Capital Rs. 152.27 Crores Market Capitalisation Rs. 3060 Crores Reserves (Excluding Revaluation Reserves) Rs. 4005.1 Crores ------------- An investor convinces himself, an analyst convinces others. |
Posted By: Nitesh_Inc
Date Posted: 19/Oct/2008 at 6:18pm
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INTERIM DIVIDEND Based on Company Announcement (NSE Website) 17-10-2008 The Great Eastern Shipping Co. Limited has informed the Exchange that the Board of Directors of the Company vide Circular Resolution dated October 17, 2008 have fixed November 03, 2008 as Record Date for the purpose of ascertaining the shareholders eligible for receiving the interim dividend, if declared, by the Board of Directors at their meeting to be held on October 24, 2008. Further the interim dividend, if declared, by the Board of Directors, will be paid to the shareholders on or after November 10, 2008. ------------------------------------------
Will GE Shipping sustain its dividend payout this time around?
Given the fact that BDI has crashed etc. etc.
What is the likely impact on the bigger and better players like GE Shipping & SCI. ? ------------- An investor convinces himself, an analyst convinces others. |
Posted By: Hitesh Shah
Date Posted: 19/Oct/2008 at 8:43pm
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I'm trying to post something from Moneycontrol with stock rates as on 17/10/2008 closing on BSE. Please verify what interests you. E. & O.E. Since the file is too big, I can't paste the full thing. So only till 8% in this post.
------------- |
Posted By: Nitesh_Inc
Date Posted: 19/Oct/2008 at 8:55pm
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Ultramarine & Thirumalai.
Its indeed a long list with many "securities"
Where you have some "trust" related words in the name itself,
you need to be very careful
 I am not looking for dividend yields higher than 20%
Cos i even need my capital back, not jus the div.
Thx
------------- An investor convinces himself, an analyst convinces others. |
Posted By: Hitesh Shah
Date Posted: 19/Oct/2008 at 8:56pm
Post contd. 7-8%
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Posted By: Hitesh Shah
Date Posted: 19/Oct/2008 at 8:59pm
Why you so suspicious? This is India. We will not cheat you.  ------------- |
Posted By: Nitesh_Inc
Date Posted: 19/Oct/2008 at 9:07pm
Thanks Hitesh,
Your words were indeed comforting.
Now I'll surely subscribe to IndiaBears IPO whenever it comes.
 Please give us the link to the dividends list (moneycontrol)
------------- An investor convinces himself, an analyst convinces others. |
Posted By: Hitesh Shah
Date Posted: 19/Oct/2008 at 9:23pm
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On their main page the link is there: http://www.moneycontrol.com/india/stockmarket/topdividentstock/20/45/marketstatistics/NSE ------------- |
Posted By: Nitesh_Inc
Date Posted: 19/Oct/2008 at 9:26pm
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Thanks Hitesh ------------- An investor convinces himself, an analyst convinces others. |
Posted By: jain208
Date Posted: 22/Oct/2008 at 3:50pm
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Article in today's ET - http://economictimes.indiatimes.com/ViewsRecommendations/Earn_high_return_by_investing_in_Dividend-FD_combo/articleshow/3625168.cms - http://economictimes.indiatimes.com/ViewsRecommendations/Earn_high_return_by_investing_in_Dividend-FD_combo/articleshow/3625168.cms ------------- ======================================= The more it changes, the more it’s the same thing. |
Posted By: joslinjose9
Date Posted: 22/Oct/2008 at 12:49pm
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this is a good strategy.can u suggest mesome shares to invest this way. ------------- fear of lord is the beginning of wisdom |
Posted By: Nitesh_Inc
Date Posted: 24/Oct/2008 at 2:28pm
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Yields getting better by the day.
Lets not forget
"Market has always and will always outsmart all the wise fools"
All the self proclaimed Warren Buffetts have been shown what the market is capable of.
We'll certainly not see more than 1 Warren Buffett for sometime now.
------------- An investor convinces himself, an analyst convinces others. |
Posted By: sajanvm
Date Posted: 24/Oct/2008 at 8:22pm
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Look at Wyeth, Solvay etc in the MNC pharma pack. Stable businesses - no tear away growth, large cash balances and most importantly they generate free cash flows. That is what can give us the assurance that dividends will continue to be paid.
Rgds ------------- Sajan |
Posted By: Hitesh Shah
Date Posted: 24/Oct/2008 at 8:40pm
This is not a comment on Solvay, per se, but the yield works out to 2.9% at CMP of Rs. 517, FV = Rs. 10, latest dividend 150% (from Rediff). Of the two, Wyeth seems a better play, again based purely on potentially sustainable dividend yield. ------------- |
Posted By: rakeshmehta48
Date Posted: 24/Oct/2008 at 9:21pm
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I have Wyeth with me. Dividend per share is RS 30 (300% FV 10)
At CMP of 365 dividend yield is above 8%
Going forward, as per my calculation, DPS will be maintained, if not increased. ------------- Fund Management is Most Important |
Posted By: Hitesh Shah
Date Posted: 24/Oct/2008 at 9:26pm
A few stocks based on today's closing sourced from Moneycontrol. E. & O.E. & Caveat Emptor.
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Posted By: Vivek Sukhani
Date Posted: 24/Oct/2008 at 11:10pm
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Most of them will slash their dividend by more than 50 p.c. Especially, beware of auto componets, refiners and Chemicals.
Paper can be looked for dividend play, although even there, reduce current DPS by 1/3, i.e. consider 2/3 of the current DPS and try to fetch 8 p.c. on the reduced DPS.
When it comes to dividend play, always remember not to get into excessive yield stock. ------------- Jai Guru!!! |
Posted By: sajanvm
Date Posted: 24/Oct/2008 at 8:40am
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Hitesh
Solvay's dividend last year was Rs 40, not Rs 15. Sustainable since free cash flow was around 27 Cr last year and they are growing 15%.
Rgds ------------- Sajan |
Posted By: Hitesh Shah
Date Posted: 24/Oct/2008 at 9:43am
Thanks for the correction ------------- |
Posted By: lukskywaker
Date Posted: 25/Oct/2008 at 10:57am
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Ensure that your stock of hig div. yielding stocks are sure to maintain their dividends in a scenario of economic slowdown... Better go for companies with large cashflow to networth like Nestle, Cenral Bank, Castrol and Coromandel Fertiliser and many more...
Though Axis Bank has a very high op. cashflow to networth ratio but considering I am exteremely bearish on Indian Real Estate, i shall be cautious about owning pvt. sector banks (due to their exposure to the sector).
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Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 12:38pm
I agree...although I dont think Nestle is yield stock. PSU banks, if they become available at 8 p.c. on the adjusted DPS( means, reducing current DPS to 2/3 of its current value), are decent plays. Dont know much about central, but Andhra and Allahabad can be considered there. Operation-wise, I am more positive on Indian bank, bank of Baroda, canara, corporation, Bank of India. ------------- Jai Guru!!! |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 12:42pm
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hmmmmm....nice seeing a fertilisier stock in there. I will prefer a tata chem rather than a coromondel. Chambal would have been fine but since Mr. KK Birla being no more, I would give Chambal a pass....better to stick with a tata Chem.
My L3 will be 88. As a matter of disclosure, I have added a few tickets between 228-180. Will convert more into tata chem, whenever I think it appropriate. ------------- Jai Guru!!! |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 12:47pm
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How about a Tata Steel or Hindalco ? ------------- An investor convinces himself, an analyst convinces others. |
Posted By: India_Bull
Date Posted: 26/Oct/2008 at 1:31pm
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Tata steel is a gem of a stock (though it is a commodity stock), 100 times better than the Chambals or Hindalco.. It is probably going to go down further but I am very very bullish on this one and assuming we are close to the bottom this one need to be picked up as the demand slowly picks up. Corus has cut down the production and expect major steel makers to do the same. A sure shot multibagger if one looks at 2012.
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 1:46pm
What do you mean when you say 100 times better ?
What are the parameters you uses to come to such a conclusion.
Especially when the three companies are not in the same business.
These are into 3 different commodities.
Aluminium & Steel are not the same ..... strictly speaking
& Fertilizer is no way close.
Please comment ------------- An investor convinces himself, an analyst convinces others. |
Posted By: India_Bull
Date Posted: 26/Oct/2008 at 1:54pm
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I just picked up the stocks mentioned below on this thread for the comparison. Still for comparison, Birlas are suckers for investors , I have not met anyone saying he made money on Birla stocks. If you dont know about Tata management and intergrity and their business accument , then you should not be in the markets and specially on this forum..
------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 2:09pm
Did I at any point doubt Tata's management or integrity ?
I just asked you a simple question as you were giving numbers "100 times" etc. etc.
You should have a basis for such conclusions isnt it?
Now that you dont have an answer..... you want me to exit the market and the forum?
Oh come on Mr. Bull
------------- An investor convinces himself, an analyst convinces others. |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 2:39pm
How many investors do you know of, Sandeep Saar? you think you are a stud or what?????
If you have not met any investor that has made in Birla stocks, its your fault, not ours. Do you know whats the purchase price for the Texmaco shares that i have sold recently, its just 11 rupees. I sold them at 900+ and at 880. I have also sold them at 1000+ earlier. Aditya birla Nuvo, the acquisition cost is way below 50. Grasim the acquisition cost may be close to 100 at the most. Chambal, I myself bought near 30, and have got rid of them at quite a decent price. ECe Industries, ,y family's acquisition price is close to 20 odd rupees, and i have got rid of them at 700+.
There is no point in making mother good statements, like 100 times better. If Birlas have got suckers, tatas also have suckers in the form of Tinplate. By the way, more people have averaged in tata steel and are licking their wounds that for hindalco. and it terms of percentage correction from 52 week high, Hindalco has done better than tata steel . tisco's peak is 1078 and is now at 178, which means roughly a sixth. Hindalco is at 43 and its peak is at 223, means it has become roughly a fifth. In auto companies, the worst performer is your favorite group's tata motors.
------------- Jai Guru!!! |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 2:44pm
See for yourself Mr. Bull.
Let me know if you still feel that I should exit the forum ------------- An investor convinces himself, an analyst convinces others. |
Posted By: India_Bull
Date Posted: 26/Oct/2008 at 2:55pm
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So I have met one who has been profited by investing in Birlas and also a gr8 investor to buy at those prices !! I have to meet many people who say so , may be then I can change my opinion. Difference of opinion makes markets and the forums. So to be or not to be is your decision !! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 3:08pm
Good that you have toned down your voice now.
Earlier you gave me an instruction to leave, now you are giving me an option
And 1 investor is enough for you. You dont need to meet people to change your opinion..... you can search for facts ...... which i must say you are very poor at!
You talk vague and more nonsense than sense most of the times.
You are one Senior Member on this forum by the number of posts and not by their quality, for sure
And we'll see who stays in the market and who leaves.
------------- An investor convinces himself, an analyst convinces others. |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 3:18pm
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Hey Nitesh_Inc, get back to the topic.......
No point in making personal attack........what has to happen, will happen.
By the way, what do you feel for shipping Corporation and great eastern. can they be called vision companies? Although people dont agree, but I find Shipping Corporation in a stage from where it can expand its business to tremendous heights. If india has to do well, it has to become major partner in global where its current position is pathetic. Also, I dont see crude demand slowing in India, at least, as far as diesel is concerned,in a reasonable future. So tanker demand may remain robust.......
------------- Jai Guru!!! |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 3:27pm
Thanks! indeed we were deviating.
I am a buyer in both at current prices.
On SCI, i am yet to go it detail.
Great Eastern's results look pretty good.
Instead of making people agree, i would prefer to keep accumulating in small quantities as and when prices dip.
GE Ship is one company where I find operations & financials in good shape.
------------- An investor convinces himself, an analyst convinces others. |
Posted By: kumardiwesh
Date Posted: 26/Oct/2008 at 3:28pm
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Tata Steel looks good at CMP.
Will it maintain its dividend payout? Sukhaniji and others plz comment. ------------- "History does not tell you the probability of future financial things happening" - Warren Buffett |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 3:41pm
first of all, a request to you not to add this suffix 'ji'. I have terrible hatred for people who try to be unnecessarily respectful. Rather I prefer who are outlandishly blunt........call me Vivek or sukhani, whatever you feel like, but please dont add a jee/ji.
Tata steel is good, but I would like a stable play at this moment.......something where I see not many people talking about them. So, i am happy to see a drop in price in goodricke/orient paper/ Goodyear/Voith paper, and am giving Tisco a pass. I have some quantity, which I dont intend to sell anytime soon and i made my tisco shares 'free', by recouping my investing by getting rid of the required tickets in the region of 800+ a ticket.
As far maintaining a payout, I think they will maintain the pay-out. Mind you I am saying pay-out, not DPS. So, if profit or its outlook go bleak, DPS may be cut down..... ------------- Jai Guru!!! |
Posted By: India_Bull
Date Posted: 26/Oct/2008 at 3:42pm
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Moderatorjee, Pls check the ip address of Niteshjee, seems some foul play. The thinking and attitude looks familiar. BTW Nitesjee, I dont think I need any certificate from you or from anyone else about what I am. If my posts are of nonsense then I am not forcing you to read them nor I have counted them for any reason. I dont know what to say but I know arguing with a fool is a waste of time and energy and I cant afford loosing both. You be here or not here or stay in the market or go bankrupt or go to He*** I dont care. All the best !! ------------- India_Bull forever Bull ! www.kapilcomedynights.com |
Posted By: Nitesh_Inc
Date Posted: 26/Oct/2008 at 3:45pm
Recent Dividend History
2001 - Rs.5,
2002- Rs.4,
2003 - Rs.8,
2004- Rs.10,
2005- Rs.13,
2006- Rs.13,
2007- Rs.15.5,
2008- Rs.16
Please also adjust a bonus (1:2) during 2004.
So far Tata Steel has maintained dividends.
This quarter's performance was not bad.
Performance may not be sustained given slowing demand & other factors.
Dividend Payout Ratio can be intact, not sure about earnings.
Hence Div/Share might come down. ------------- An investor convinces himself, an analyst convinces others. |
Posted By: Hitesh Shah
Date Posted: 26/Oct/2008 at 4:16pm
Vivek, I think for people who don't have any exposure at all to steel in their portfolio, Tata Steel should be a screaming buy, with two provisos: 1] there is every likelihood of perhaps getting it cheaper in the future  ,and 2] as you have rightly warned, don't expect anywhere near the present dividends to be sustained in the near future. On a lighter note, yes, they will maintain some sort of payout otherwise there will be a riot of aged people (good self included) outside Bombay House .------------- |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 4:23pm
Hey Hitesh, I am not taking any call on tisco's dividend. I believe they will maintain their payout ratio....so, if profits be okay, you can expect a same DPS. Extremely difficult to make up mind on tata steel at this moment. ------------- Jai Guru!!! |
Posted By: Hitesh Shah
Date Posted: 26/Oct/2008 at 4:31pm
Vivek, elsewhere you wrote:
Yes, I did say Voith Paper... I was invested in it for less than one day! Actually, I nibbled after reading your posts about it! But the intraday opportunity was too much to resist so I sold on the same day itself. So that was my only experience with Voith. Call me insecure or whatever, but I want moderate liquidity in the stocks I buy. Differences of 10% or so between the buy and sell prices turn me off. Incidentally, there seems to be much demand for info on "sustainable" dividend stocks . Since much of this dividend shividend had originated with you (and I mean that in a GOOD, complimentary way ), we are looking forward to your continued comments on the same! I will contribute a few names as well.------------- |
Posted By: Vivek Sukhani
Date Posted: 26/Oct/2008 at 4:51pm
Well, as far as dividends are concerned, Abhishek displays more conviction than me. He is an aggressive accumulator, very much in the mould of a very typical dividend investor. I have a laid back plan and try to get into many stocks at the same point of time. Also, i abandon stocks where I dont get a sense of comfort of ownership.
Although i generally avoid recommending, yet i will ask you to get a very few tickets of this company and go through the Annual report, especially its financials. The results for this september quarter has been okay, although during the year, they messed up a bit, but seem to be back on track with a 20+ cash earnings per share and 16+ rupees in EPS. at about 5.5 times, I dont find it very expensive.
As voith's not a yield stock, I would limit my talk here......
------------- Jai Guru!!! |
Posted By: Hitesh Shah
Date Posted: 26/Oct/2008 at 5:07pm
What to do? People ask. I also ask. One must understand that just getting a name doesn't free one from the responsibility of researching and deciding yes or no, and if yes, how much and at what price, and whether to exit and when, etc., etc, etc. It also goes without saying that just looking at the dividend and buying into a stock is playing with fire. Various finance / brokerage companies are currently giving dividend yields of 20% +! As is a Z group company. This one is called Taparia Tools and the products are well respected in Bombay. But still since it's in Z group, it is difficult to recommend! Even if we don't want to name names, perhaps some ground guidance for new-comers would be welcome. Let's see ... ------------- |