30 Blue-Chip stocks (with high dividend yield) are trading at a discount to their 10-year avg prices

Discussion in 'Must-Read Interviews, Articles & News Items' started by Arjun, Jul 9, 2021.

  1. Arjun

    Arjun Chief Executive Officer (CEO) Staff Member

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    Many investors are understandably experiencing a sense of FOMO because they stayed away from buying stocks in the fear that the markets would correct and instead the markets have shot up.

    Thankfully, the experts at ET have fished out a list of top-quality stocks which are still quoting at a discount to 10 year average prices.

    Some of the stocks boast of a high dividend yield as well, which makes them safer from a valuation perspective.

    The 30 stocks listed include REC, ONGC, Gall India, Petronet LNG, Indian Oil, ITC, Mahindra & Mahindra, Amara Raja Batteries, NTPC, Exide Industries, Coal India, Aurobindo Pharma, BPCL, Manappuram Finance, LIC Housing Finance, Mahanagar Gas, Power Grid Corp, Shriram Transport Fin and HPCL.

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    (Image source: ET)

    "Majority of the stocks in the ET study are part of the value basket. As a theme, value investing has been working well globally and in India since November when drug makers announced vaccines against coronavirus were ready to hit the market. Value indices have outperformed growth since then. Value stocks have come back in focus with many investors scouting for winners with reasonable valuations. Analysts said value could continue to outperform growth globally as expectations of an economic revival and lower real rates near term have boosted appetite for stocks that have been ignored in recent years," the report has stated.

    It added that these stocks could offer 10% to 30% returns over the next 12 months, according to analysts’ estimates.

    It is notable that several of these Blue-Chip stocks also feature in the list of high-dividend yield stocks prepared by HDFC Sec.

    Coal India, for instance, boasts of a 9% dividend yield. Similarly. ITC and ONGC offer a dividend yield of 5.10% and 4.6% respectively.

    Click here to download the latest List Of High Dividend Yield Stocks by HDFC Sec.
     
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