IDFC with a dividend yield of nearly 11 per cent tops the dividend yield list of the NSE 500 companies, shows the latest ACE Equity data.
It is followed by BPCL (9 per cent), HPCL (8 per cent), Indian Oil Corporation (7 per cent) and Vedanta (6.6 per cent).
That apart, Chennai Petroleum, Coal India, UTI Asset Management Company, ONGC, Ujjivan Small Finance Bank, ICICI Securities, Power Grid Corporation, NMDC, Gujarat Pipavav and HCL Technologies dividend yield stands in the range of 3 – 5.6 per cent.
What is dividend yield, and its significance?
Dividend yield is a financial ratio that tells you about the per centage of a company’s share price paid out in dividends annually. In a way, it is an amount you as an investor earn as dividend-only on your investment in the particular stock.
The dividend yield is calculated by simply dividing the annual dividend per share by the current market price. For e.g. if the annual dividend is Rs 10 per share and the stock price is Rs 200; the dividend yield will be 5 per cent.
Dividend yield is a useful metric in determining if the stock trades at a good valuation or not. In general, when a company declares a stock dividend, it signals its optimistic outlook and belief in future prosperity.
Should you buy these dividend yield stocks at present levels or what should your trading strategy be?
Here’s how the top 5 dividend yield stocks are placed on the technical charts – Watch out for these key levels:
IDFC
Current Price: Rs 110
Upside Potential: 5.5%
Support: Rs 109; Rs 105
Resistance: Rs 113; Rs 115
IDFC stock is seen attempting to snap its lower-highs, lower-lows pattern on the daily scale. The stock will need to rise above Rs 111.70 to do so. Further, on the weekly scale, the stock seems to have found support around its 100-WMA (Weekly Moving Average), which stands at Rs 105.
That apart, the monthly chart indicates that the stock needs to hold above Rs 109 on a monthly closing basis for the bias to remain positive.
BPCL
Current Price: Rs 352
Upside Potential: 10.8%
Support: Rs 347; Rs 338
Resistance: Rs 365; Rs 375
The price-to-moving averages action seems favourable for BPCL. The near-term trend is likely to remain upbeat at long as the stock holds above Rs 347. On the upside, the stock seems headed towards Rs 390, with immediate resistance seen at Rs 355.
HPCL
Current Price: Rs 398
Upside Potential: 8%
Support: Rs 391; Rs 377
Resistance: Rs 400; Rs 411; Rs 420
HPCL too is seen trading with a positive bias on the daily scale. The stock at present is seen testing resistance around its higher-end of the Bollinger Bands at Rs 400. Having said that, the near-term bias for the stock is likely to remain upbeat as long as it trades above Rs 391.
Indian Oil (IOC)
Current Price: Rs 172
Upside Potential: 14%
Support: Rs 164
Resistance: Rs 177; Rs 184
Unlike the other two stocks of state-run oil marketing companies, IOC seems to be trading on a tepid note. The key momentum oscillators on the weekly and monthly chart suggest a mixed bias. As such, the near resistance on the weekly chart at Rs 177 becomes crucial. The stock will need to conquer this in order for the trend to turn favourable.
Vedanta
Current Price: Rs 450
Upside Potential: 7.3%
Support: Rs 423
Resistance: Rs 456; Rs 458
First Published: Aug 21 2024 | 11:23 AM IST
