Dividend stocks to buy in a declining market

Coal India

Coal India shares offer a very good dividend to shareholders. The company declared a good dividend and for fiscal 2021, Coal India announced a dividend of Rs 16 per share. This translates into a dividend yield of 10.93%.

Shares of the company have gone from Rs 202, 52 week highs, to current levels of Rs 146. At current market prices, dividend yields are quite good.

The company is expected to maintain a steady stream of dividends in the years to come, as demand for coal continues to increase. Coal India shares last closed at Rs 146.50 on the NSE.

PFC

PFC

Power Finance Corporation is a majority Indian government owned company engaged in the financing of energy projects. This is another stock that has been consistent in terms of dividends over the past few years. PFC has declared dividends per share of around Rs 6 to Rs 10 over the past few years. At the current market price, this gives a dividend yield of between 6 and 9%.

We don’t expect dividends to improve significantly, however, we do hope dividends will be constant going forward.

Overall, the company has a good track record in paying dividends and investors with a long-term perspective can buy. The stock is also less volatile than the others.

Shares of Power Finance Corporation last closed at Rs 119 on the NSE.

A warning in the markets

A warning in the markets

While dividend-paying stocks look attractive at the moment, we advise investors to be a little cautious given the state of the markets. If you are a long term investor your best bet would be to buy on the downside. Avoid investing large sums and seek only to invest partially and that also with decreases. Investors with an appetite for risk only should buy.

Warning

Warning

Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author and the brokerage are not responsible for any losses caused as a result of decisions based on the article.


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