3 Solid Dividend Paying Stocks Long-term Investors Must Buy & Keep In Their Portfolio

Markets over the last 2-weeks are seeing some gains, though they are likely to remain volatile going ahead. Here are 3 stocks to buy that are good from a long-term perspective and also from the point of view of dividend.

Oracle Financial Services

One of the reasons to buy the stock Oracle Financial Services is the dividend of nearly 5.78%. The stock is also available at a p/e of nearly 15 times trailing EPS, which is pretty low and perhaps one of the lowest for a software services company. Oracle Financial Services is a leading player in the banking and insurance business. The company reported an EPS of Rs 210 for FY 2021-22. If we assume a price to earnings multiple of 20 times, the stock should trade at Rs 4200. This leaves an upside potential of at least 30% from the current levels of Rs 3200. If you are a long-term investor willing to hold the stock for 3-5 years, the shares of the company are a good buy. This is one of the top stock recommendations that we have for investors right now. The shares of Oracle Financial Services were last seen trading at Rs 3281 on the National Stock Exchange.

Tata Steel

Tata Steel is trading at a huge discount to long term averages. In fact, the stock of trading at a p/e of 5-times, while the 10-year average is at around 12.2 times, making for a steep discount of 59%. Having said that steel prices may come-off a bit, which may result in quarterly numbers seeing some under performance in the quarters to come. Apart from this if, you buy the stock now, there is a stock split. Of course, the stock split will ensure that the stock prices would fall in tandem, but, due to the affordability the share price could move higher over the more longer term. Tata Steel management has also been repaying debt and deleveraging its balance sheet. If the trend continues in this year as well, it would have substantially reduced debt. Overall, this metal stock is a good stock recommendation and we suggest investors to buy the stock. The shares are also good to buy for their dividend yield of 4.58%.

Castrol India

Castrol India is the country's biggest player in the lubricants business. The stock of Castrol India is another stock that is worth accumulating on account of decent valuations and low price to earnings multiples. Apart from this, the stock of Castrol India is also available at a dividend yield of slightly above 5%. The price to earnings ration of around 11 times, also makes the stock cheap in terms of valuations. Recently, the automobile company MG Motor India and lubricants major Castrol India have announced a collaboration with Jio-bp to explore mobility solutions for electric cars. The stock of Castrol India is down from levels of Rs 140 the current levels of Rs 107, which makes the shares even more attractive to buy.

Disclaimer

Investing in stocks is subject to market risks. Investors are advised caution and do their own research before investing. Greynium Information Technologies Pvt Ltd and the Author would not be held responsible for losses. The author owns shares in Oracle Financial Services and Tata Steel.