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.
| Ex Dividend | Dividend | Face Value | Dividend | Dividend per | CMP (|) | Mcap | Stock return (%) | ||
| Company Name | Date | % | (|) | yield (%) | share (|) | (27/08/2012) | (| cr) | 1 month | 3 month |
| Tamil Nadu Newsprint & Paper | 12/9/2012 | 50 | 10 | 4.4 | 5.0 | 114 | 789 | 1.2 | 16.3 |
| Munjal Auto Industries | 13/09/2012 | 100 | 2 | 4.4 | 2.0 | 45.65 | 228 | -11.4 | -20.0 |
| Gujarat Industries Power Company | 7/9/2012 | 25 | 10 | 3.6 | 2.5 | 68.6 | 1038 | 6.7 | 11.4 |
| Neyveli Lignite | 30/08/2012 | 28 | 10 | 3.4 | 2.8 | 82.3 | 13808 | 1.1 | 15.9 |
| H P C L | 30/08/2012 | 85 | 10 | 2.7 | 8.5 | 316.45 | 10716 | -5.1 | 5.3 |
| Electrosteel Castings | 30/08/2012 | 50 | 1 | 2.7 | 0.5 | 18.7 | 611 | 3.6 | -2.9 |
| Titagarh Wagons | 6/9/2012 | 80 | 10 | 2.6 | 8.0 | 305.35 | 612 | 1.1 | -0.1 |
| PTC India | 12/9/2012 | 15 | 10 | 2.6 | 1.5 | 57.1 | 1684 | 3.6 | 5.6 |
| Mangalore Chemicals & Fertilizers | 18/09/2012 | 12 | 10 | 2.6 | 1.2 | 46.05 | 546 | 0.9 | 15.1 |
| HEG | 7/9/2012 | 50 | 10 | 2.5 | 5.0 | 203.75 | 814 | -1.3 | -1.9 |
| Indian Oil Corporation | 5/9/2012 | 50 | 10 | 2.0 | 5.0 | 248.4 | 60310 | -4.8 | -6.4 |
| IDBI Bank | 31/08/2012 | 15 | 10 | 1.8 | 1.5 | 84.2 | 10764 | -1.1 | -3.2 |
| Unichem Laboratories | 13/09/2012 | 150 | 2 | 1.8 | 3.0 | 170.7 | 2027 | 14.3 | 29.7 |
| Navneet Publications | 20/09/2012 | 40 | 2 | 1.5 | 0.8 | 53.55 | 1276 | -4.5 | 0.2 |
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.
Illustration:
Dividend Declaration Date Ex-Dividend Date Record Date Dividend Payable Date
23/07/2012 25/08/2012 27/08/2012 04/09/2012
From the above illustration, for a person to be eligible for dividend, he/she has to buy the shares before 25/08/2012. To be eligible for dividend, shares can be purchased between July 23, 2012 and August 24, 2012. If the person buys on the ex-dividend date i.e. August 25, 2012, the person would not be eligible for dividend.
High Dividend Yield Stocks
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i would like to say that High dividend yield stocks are not automatically risk proof. You need to do your due diligence to determine whether they are ideal for you.
Singapore dividend stocks