14 March 2012

March 2012: Dividend Yield Stock: ICICI Securities pdf link

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http://www.icicidirect.com/mailimages/ICICIdirect_ExpectedDividendYield_Q4FY12.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.
We have short-listed companies that would provide a decent dividend yield in the near future. For this purpose, we have
filtered companies that have made at least 75% of FY11 profits in the nine months ended December 2011 and assumed
that the companies would maintain their FY11 dividend payout ratio. We have forecasted the FY12E PAT by taking the
actual PAT of nine months ended December 2011 and assumed Q4FY12 as an average of last three quarters net profit.
Based on the FY12E net profit and FY11 payout ratio, we have calculated the dividend percent for FY12E. Finally, we have
deducted the interim dividends already paid in FY12 to arrive at the expected final dividend and dividend yield.

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