ICICI Securities has identified the best 20 dividend stocks that you must buy for your portfolio. ICICI Securities explains that high dividend yield stocks offer a safe haven to investors where safety has greater priority compared to high returns. Hence, even if the market remains volatile, going ahead, an investor can still get a decent return on investment, thanks to good dividend yielding stocks. The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment in a weak market.
| Exhibit 1: High dividend yield stocks | |||||||
| Dividend | Face Value | Dividend yield | Dividend per | CMP (|) | |||
| Company Name | Idirect code | Ex Dividend Date | (%) | (|) | (%) | share (|) | (22/06/2012) |
| Ashok Leyland | ASHLEY | 12/7/2012 | 100 | 1 | 4.0 | 1.0 | 24.9 |
| Graphite India | CAREVE | 18/07/2012 | 175 | 2 | 4.0 | 3.5 | 87.9 |
| Syndicate Bank | SYNBN | 11/7/2012 | 38 | 10 | 3.7 | 3.8 | 102.9 |
| J & K Bank | JAMKAS | 5/7/2012 | 335 | 10 | 3.6 | 33.5 | 937.9 |
| Tata Investment Corpn. | TATINV | 18/07/2012 | 160 | 10 | 3.5 | 16.0 | 451.9 |
| Piramal Healthcare | NICPIR | 9/7/2012 | 875 | 2 | 3.4 | 17.5 | 516.7 |
| Elecon Engineering Company | ELEENG | 23/07/2012 | 90 | 2 | 3.3 | 1.8 | 54.1 |
| Bajaj Holdings | BAJAUT | 5/7/2012 | 250 | 10 | 3.3 | 25.0 | 767.3 |
| Tata Elxsi | TATELX | 13/07/2012 | 70 | 10 | 3.2 | 7.0 | 216.8 |
| JK Lakshmi Cement | JKCORP | 30/07/2012 | 40 | 5 | 3.1 | 2.0 | 64.3 |
| Bajaj Auto | BAAUTO | 5/7/2012 | 450 | 10 | 2.9 | 45.0 | 1545.3 |
| Praj Industries | PRAIN | 12/7/2012 | 81 | 2 | 2.9 | 1.6 | 55.7 |
| Tata Steel | TISCO | 16/07/2012 | 120 | 10 | 2.9 | 12.0 | 418.7 |
| Jyoti Structures | JYOSTR | 9/7/2012 | 55 | 2 | 2.8 | 1.1 | 38.8 |
| Alstom Projects | ABBALS | 17/07/2012 | 100 | 10 | 2.7 | 10.0 | 371.0 |
| Kirloskar Oil | KIRENG | 10/7/2012 | 200 | 2 | 2.6 | 4.0 | 151.0 |
| Akzo Nobel | ICIIND | 30/07/2012 | 200 | 10 | 2.3 | 20.0 | 874.7 |
| Voltamp Transformers | VOLTRA | 30/07/2012 | 100 | 10 | 2.1 | 10.0 | 471.7 |
| Mcleod Russel | MCLRUS | 17/07/2012 | 120 | 5 | 2.1 | 6.0 | 292.3 |
| Wyeth | WYELED | 6/7/2012 | 180 | 10 | 2.0 | 18.0 | 912.9 |
| Source: Capitaline, ICICIdirect.com Research |
ICICI Securities has also explained that there are four basic dates associated with the dividend declaration and payment
1. Dividend declaration date: This is the date on which the board of directors announces to shareholders the quantum of dividend that will be paid by the company.
2. Ex-dividend date – On (or after) this date the security trades without its dividend. If an investor buys a dividend paying stock one day before the ex-dividend he/she will still get the dividend. However, if the stock is bought on the ex-dividend date, the investor will not get the dividend.
3. Record date – This is the date on which the company looks at its records to see who the shareholders of the company are. An investor must be listed as a shareholder to ensure the right of a dividend payout.
4. Dividend payable date – This is the date when the company mails the cheques for the dividend amount due to the shareholders who appear on the register of shareholders.
Top Dividend Stocks For 2012 & 2013
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