ITC, Balmer Lawrie, SKF India: Time to bet on high dividend yield plays?

Historically, public sector enterprises (PSEs) have been high dividend payers and helped the government bridge any tax collection shortfall.

The market recovery since the March 2020 low has mostly been fueled by liquidity and positive news flow in select counters. While Reliance Industries (RIL) gained ground on the stake sale in its telecom venture, Jio Platform, to marquee investors, investors have also rewarded stable corporate performance in the March 2020 quarter amid Covid-19 pandemic. In times such as these, investors also bank upon stocks of companies that pay a higher dividend.

In the current economy where bank fixed deposits offer interest rates to the tune of 4-6 per cent, there are stocks that beat this return via the dividend