Hero Motor Corp

Hero Motor Corp is the world's largest selling two-wheeler maker. Off-late, stocks from the auto space have fallen a great deal and in some cases the erosion is as much as 50 per cent. Hero Motor Corp has now hit a 52-week low price of Rs 2,538 and is now down 26 per cent in the last one year.

From these levels, it is unlikely that we will see significant erosion in price, given that the dividend yield will support the stock.

For the year ending March 2018, Hero Motocorp declared an equity dividend of 4750.00% amounting to Rs 95 per share. At the current share price of Rs 2543, the dividend yield works to 3.75%. If there is a further downside in this stock, it is worth accumulating.

Coal India

This is another stock whose dividend yield is pretty decent In fact, for the year ending March 2019, the company will end with a dividend of Rs 13.1 per share. This translates into a dividend yield of 5.6 per cent. The dividend yield would have been much higher had the company not been able to undertake a buyback of shares.

In fact, based on the dividends for the year ending 2018, the yield works close to 7 per cent. Coal India is one of the largest coal mining companies in the world, which is also cash rich. It has a virtual monopoly business and hence the business barely faces any risk. The shares of the company are currently trading at Rs 234.

IndiaBulls Housing

This stock gives you a dividend yield of 5.6 per cent at the current market price of Rs 750. The shares of IndiaBulls Housing, like most housing finance companies have fallen dramatically from levels of Rs 1400 to the current levels of Rs 750.

The fall has largely been on account of the IL&FS fiasco and also on account of the worries surrounding DHFL. However, India Bulls Housing has often clarified that its liquidity position continues to remain sound.

The stock is also trading at a p/e of just 9 times one year forward earnings, which is not very expensive. A good stock to buy for regular dividends.

NMDC

This company is in the iron ore mining business and like Coal India, is owned by the government. For the year ending March 31, 2019, the company would end with a dividend of 5.52 per share, which was declared on March 12, 2019.

At the current market price of Rs 102, the dividend yield is almost identical to the dividend declared. This too is a good stock to own for its dividend yields.

Disclaimer

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