Friday, December 30, 2011

High dividend yield stock should look in 2012: ET

The BSE Sensex has slipped over 20% so far in 2011 mimicking the fall in global markets. However, the burgeoning fiscal deficit situation, high inflation rate scenario and slowdown in corporate earnings growth have stalled India's growth story to some extent in 2011.

Since the onset of the European debt crisis, global markets have been plagued with uncertainty and slowdown in growth.

Brokerage firm CLSA has also lowered its 12-month target for the benchmark index, BSE Sensex, to 17,000 from 18,200, citing earnings cuts for FY12 and FY13.

The research house has reduced its earnings estimates for the Sensex by 1-3 percent over the last month and now forecasts 14 percent earnings growth in FY12 and 10 percent earnings growth in FY13.

The economy grew at its slowest in more than two years in the July-September quarter as the impact of rising interest rates, surging inflation, policy delays and a weak global economy hurt expansion plans, dragging growth to sub 7% levels.

For investors spooked by the slide in equities during better part of the year, it may not be a bad idea to consider high dividend yielding stocks. Here's our pick of stocks which have consistently given a dividend yield of 4% or more over the past three years.

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