Here are a set of stocks that are under Rs 100 and offer a good dividend yield
|Name||Current market price||Dividend yield|
|Housing & Urban||52.4||6.68%|
Should you buy into such stocks?
This is hard to say, as one needs to analyse fundamentals of these companies. For example, Steel Authority of India dividends would largely depend on profitability, which is a direct outcome of steel demand and steel prices. Many individuals are now talking of steel demand falling as recession looms, so to sustain high dividends for commodity companies could be difficult. In our opinion stocks like CESC, which is a power distribution and power generating company could continue to maintain dividends, largely on account of the nature of the business. The stock is also attractively valued at around 8 times p/e. It’s important to remember we are not giving any buy or sell recommendations on these stocks and are only providing investors some insight as fundamentals of stocks can change quickly. Having said that stocks that give good dividends today, may not necessarily do so tomorrow.
Markets to consolidate
Domestic equities continued with its weakness for the fourth consecutive session, reacting to the RBI policy outcome and on worries of aggressive rate hikes by US Fed next week. Nifty though opened flat, saw profit booking post RBI MPC announcement despite the outcome being in line with estimates. It ended near days’ low at 18560 with loss of 82 points (-0.4%). Even midcaps and smallcaps saw weakness and were down 0.6% each. Except FMCG and PSU Banks, all the counters saw selling pressure.
“Market is likely to remain consolidative given the bigger event of US Fed monetary policy due next week. Post the strong services PMI data and the jobs data, investors are worried that the Fed might continue with its aggression for some more time. Sector rotation is being witnessed in the market,” says Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
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