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India Equity Research Reports, IPO and Stock News
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http://www.icicidirect.com/mailimages/ICICIdirect_DividendYieldStocks_May2012.pdf
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.
Exhibit 1: High dividend yield stocks
Company Name Idirect code Ex Dividend Date
Dividend
(%)
Face Value
(|)
Dividend yield
(%)
Dividend per
share (|)
CMP (|)
(22/05/2012)
Indian Overseas Bank INDOVE 21/06/2012 45 10 5.7 4.5 79.4
Andhra Bank ANDBAN 27/06/2012 55 10 5.3 5.5 103.6
Finolex Inds. FININD 12/7/2012 30 10 5.1 3.0 58.4
Bank of Maharashtra BANMAH 14/06/2012 22 10 4.6 2.2 47.7
Graphite India CAREVE 18/07/2012 175 2 3.9 3.5 90.2
Tata Investment Corporation TATINV 18/07/2012 160 10 3.6 16.0 439.0
Oriental Bank of Commerce ORIBAN 4/6/2012 79 10 3.6 7.9 219.6
VST Inds. VSTIND 15/06/2012 650 10 3.5 65.0 1868.8
Indiabulls Financial Services INDBUL 25/05/2012 350 2 3.2 7.0 219.0
JK Lakshmi Cement JKCORP 30/07/2012 40 5 3.2 2.0 63.0
Punjab National Bank PUNBAN 14/06/2012 220 10 3.1 22.0 720.7
Tata Steel TISCO 16/07/2012 120 10 3.0 12.0 399.4
SREI Infrastructure Finance SREINT 1/8/2012 5 10 2.6 0.5 19.2
Torrent Power TORPOW 14/06/2012 35 10 1.8 3.5 192.9
Orient Paper & Industries ORIPAP 26/07/2012 100 1 1.8 1.0 56.1
GRUH Finance GRUFIN 6/6/2012 115 10 1.8 11.5 653.6
H D F C HDFC 22/06/2012 550 2 1.7 11.0 642.6
Kirloskar Brothers KIRBRO 12/7/2012 100 2 1.7 2.0 117.7
Axis Bank UTIBAN 14/06/2012 160 10 1.7 16.0 966.1
Source: Capitaline, ICICIdirect.com Research
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
23/04/2012 25/05/2012 27/05/2012 04/06/2012
From the above illustration, for a person to be eligible for dividend, he/she has to buy the shares before 25/05/2012. To
be eligible for dividend, shares can be purchased between April 23, 2012 and May 24, 2012. If the person buys on the exdividend date i.e. May 25, 2012, the person would not be eligible for dividend.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
http://www.icicidirect.com/mailimages/ICICIdirect_DividendYieldStocks_May2012.pdf
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.
Exhibit 1: High dividend yield stocks
Company Name Idirect code Ex Dividend Date
Dividend
(%)
Face Value
(|)
Dividend yield
(%)
Dividend per
share (|)
CMP (|)
(22/05/2012)
Indian Overseas Bank INDOVE 21/06/2012 45 10 5.7 4.5 79.4
Andhra Bank ANDBAN 27/06/2012 55 10 5.3 5.5 103.6
Finolex Inds. FININD 12/7/2012 30 10 5.1 3.0 58.4
Bank of Maharashtra BANMAH 14/06/2012 22 10 4.6 2.2 47.7
Graphite India CAREVE 18/07/2012 175 2 3.9 3.5 90.2
Tata Investment Corporation TATINV 18/07/2012 160 10 3.6 16.0 439.0
Oriental Bank of Commerce ORIBAN 4/6/2012 79 10 3.6 7.9 219.6
VST Inds. VSTIND 15/06/2012 650 10 3.5 65.0 1868.8
Indiabulls Financial Services INDBUL 25/05/2012 350 2 3.2 7.0 219.0
JK Lakshmi Cement JKCORP 30/07/2012 40 5 3.2 2.0 63.0
Punjab National Bank PUNBAN 14/06/2012 220 10 3.1 22.0 720.7
Tata Steel TISCO 16/07/2012 120 10 3.0 12.0 399.4
SREI Infrastructure Finance SREINT 1/8/2012 5 10 2.6 0.5 19.2
Torrent Power TORPOW 14/06/2012 35 10 1.8 3.5 192.9
Orient Paper & Industries ORIPAP 26/07/2012 100 1 1.8 1.0 56.1
GRUH Finance GRUFIN 6/6/2012 115 10 1.8 11.5 653.6
H D F C HDFC 22/06/2012 550 2 1.7 11.0 642.6
Kirloskar Brothers KIRBRO 12/7/2012 100 2 1.7 2.0 117.7
Axis Bank UTIBAN 14/06/2012 160 10 1.7 16.0 966.1
Source: Capitaline, ICICIdirect.com Research
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
23/04/2012 25/05/2012 27/05/2012 04/06/2012
From the above illustration, for a person to be eligible for dividend, he/she has to buy the shares before 25/05/2012. To
be eligible for dividend, shares can be purchased between April 23, 2012 and May 24, 2012. If the person buys on the exdividend date i.e. May 25, 2012, the person would not be eligible for dividend.
Preferred stock pays out a dividend, usually monthly, and carries a credit rating similar to that of bonds. Companies with outstanding preferred stock are required to pay their dividends before they pay out any dividends on their common stock shares.
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