88 stocks offer over 5% dividend yield

Okay folks, it's time to go shopping. Thanks to a 20 per cent fall in the market value of stocks after April 22, dividend yield on at least 88 stocks is over 5 per cent, which is the current rate on bank deposits.

One-year savings deposits fetch only 3.50 per cent a year, while one-year fixed deposits offer a 5 per cent yield.

The stocks, however, offer an opportunity to earn a dividend yield of over 5 per cent in a month. This is because their record dates for availing dividends begins only after June 24, 2004.

Historically, the study reveals that high dividend-yield stocks are best bet in a bear market. When the cycle turns bullish, it is likely that these stocks will fetch returns in excess of 100 per cent.

Of the 88stocks, 20 firms will earn a dividend yield of over 8 per cent. As many as 41 companies are now traded at a dividend yield over 6-8 per cent and another 27 companies fetch you dividend yield over 5-6 per cent.

Public sector undertaking refineries stocks such as Kochi Refineries and Bongaigaon Refineries are traded at dividend yield of over 8 per cent.

Bongaigaon Refineries trades at dividend yield of 8.35 per cent and is currently quoted at Rs 59.20 on the Bombay Stock Exchange (BSE). The company has declared a dividend of Rs 5 a share for 2003-04.

Kochi Refineries, which posted net profit of Rs 555 crore, trades at a dividend yield of 7.86 per cent and company declared dividend of Rs 12 a share. The stock is quoted at Rs 152.60 on the BSE.

ICI proposed a dividend of 125 per cent (Rs 12.50 per share) and trades at a dividend yield of 7.23 per cent. Ultramarine and Pigment, which declared dividend of 100 per cent (Rs 10 a share), has a dividend yield of 6.96 per cent.

SKP Securities had the highest dividend yield of 12.20 per cent. During 2003-04, company posted net profit of Rs 1.37 crore against Rs 34 lakh reported in previous year. The company had declared 10 per cent dividend (Re 1 a share), and stock is traded at Rs 8.20 on the BSE.

ADF Foods ranked second with a dividend yield of 10.05 per cent and its trades at Rs 9.95. The company reported more than a six-fold rise in net profit to Rs 2.29 crore and declared a dividend of Re 1 for 2003-04.

Two Tata group companies, Tata Metaliks and Tata Sponge, had a dividend yield at 6 per cent each. Tata Metaliks, which declared a dividend of Rs 3.50 a share, currently trades at Rs 57.55 a share on the BSE. While Tata Sponge, which declared dividend of Rs 5 a share, trades at Rs 85.75 a share.