Stocks To Buy: 7 Stocks With Dividend Yield Above 5%

Markets have moved in a narrow range for sometime now. The Adani episode has kept the markets volatile. Here are a few stocks that you can buy based on recommendations of brokers, which give you good dividend yield.

7 Stocks with good dividend yield

Name of company	Current market price	Dividend yield
Power Grid Corporation	212.6	6.96%
CESC	72.5	6.11%
Coal India	215	7.88%
Oracle Financial Services	3166	6%
Sanofi India	5290	9.23%
REC	120.85	12.66%
PFC	143.65	8.70%

A few points to note

Some of these stocks could have declared one-off dividends like sale of an asset. For example, Sanofi India had sold a certain division and the dividends of 2021-22 could have reflected that boosting the dividends. Some others could have declared a bonus and do not expect the same dividend per share this year, reducing the dividend yields. For example, REC dividend yields are unlikely to remain that high as the company declared a bonus issue of shares last year. The ones that are more secure in terms of dividends are Oracle, Coal India and CESC. Apart from this the consistency of dividends would also remain paramount. The most important thing to remember when buying dividend stocks would be whether the company would able to maintain or enhance the dividend in the coming years.

Should you buy these dividend stocks?

Several brokerages have upped their target on stocks like CESC. Recently, broking firm Emkay Global had a buy call on the stock of power distributor CESC for a target price of Rs 101. The stock had ended traded at Rs 72.50. Sharekhan had a buy call on the stock of Coal India. "The board has given an in-principle approval to divest a 25% stake in Bharat Coking Coal Limited and awaits the government's nod. A stake sale and a potential listing could help unlock value. We maintain a Buy recommendation on CIL with an unchanged target price of Rs. 280," the brokerage had said. Coal India a majority Government of India owned entity and the last miner of Coal in the world.

Disclaimer

The above is for information purpose only. The "buy" calls are from the respective brokerage reports. This is not a "buy' call from the author or Greynium Information Technologies. Investors are advised caution as investing in markets is risky. Greynium, the author and the respective brokerage house would not be responsible for losses based on the above article. Markets have turned very volatile and hence investors should be circumspect before investing.