PSUs with high dividend yields
We have handpicked PSUs which are worth exploring on the basis of their dividend paying record
By Vikas Vardhan | Mar 18, 2016
The current fall in the equity market has hit all kinds of stocks hard. The effect is, however, especially felt in public-sector undertakings (PSUs). The thrashing of PSU stocks has resulted in their trading at high dividend yields. For many companies, these yields are still not the historical highs, yet they are a rare occurrence.
In the following table, we look at the PSU companies which have the current dividend yield of more than 3 per cent. The table gives a historical perspective of the maximum dividend yield over the past 15 years.
PSUs that may not keep up with their dividend yields
Investing just by looking at a high dividend yield may be deceptive. This is because the dividend yield is calculated by taking the dividends in the past 12 months and the current price. It is possible that high dividends are not made in the following or the current year. For example, the following table lists the companies which have a high dividend yield due to the past-year dividend, but in the last 12 months they have made losses and therefore they may not declare dividends this year. The list is dominated by banks.
PSUs with sustainable dividend payouts
Out of the PSUs which have high dividend yields, we have handpicked the ones which are worth exploring based on the dividend trend. They have made healthy profits and consistent dividend payouts in the past. Their high dividends are more likely to be sustained in the future also.
It's time to start building your stock portfolio with great stocks at low valuations.
Our equity analyst team has sifted through hundreds of companies and selected a short list of stocks that you should invest in. This list now has 38 stocks on it. Thousands of our members are using stagnant equity markets to buy great stocks at low prices.
Membership is currently available at a 40% to 60% discount. Learn more and become a member