The price movement of 234 scrips of companies that offered dividend yields of over 8 per cent show these stocks gained a hefty 40 per cent in the past year. The prices of 24 stocks appreciated by over 100 per cent and those of 51 others moved up 50-100 per cent.
In 2002, while the market price of high dividend-yielding stocks increased by over 16 per cent, the sensex dropped 8 per cent. In 2001, the sensex and the Nifty depreciated by over 25 per cent, while share prices of the top dividend-yielding companies appreciated by over 18 per cent.
Scrips of low dividend-paying companies showed a modest depreciation in prices as against firms that paid no dividends at all.
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The prices of low dividend-yielding stocks (those with dividend yields of below 8 per cent) showed a depreciation of 4.3 per cent in the past year as against an 11 per cent fall in the sensex. In 2001, the value of low dividend-yielding stocks declined 3.9 per cent, compared with the over 25 per cent drop in the sensex.
The Kalyani Forge scrip averaged Rs 7.75 a year ago, translating into a dividend yield of 15.48 per cent. The price of this stock appreciated 400 per cent in the course of the past year. Indo Rama Synthetics (up 288 per cent), Aban Lloyds Chiles (up 266 per cent), Jindal Strips (up 216 per cent), Andhra Bank (up 198 per cent) and Jubilant Organosys (up 191 per cent) are some of the high dividend-yielding stocks which saw prices appreciating sharply in the past year.