Best time to buy a stock ? Well what better than a recession when even the best in the business is available at a steep discount ! TCS is my 1st choice at the moment. Why ? Well, following points speak for itself (1) 2nd Largest IT company in the world with no worry of future business. (2) Largest company of Tata Group which is the largest business group of India. App. 70 % of profit of Tata group come from this single company. (3) Continuously growing top line and bottom line of business (4) Available at reasonable valuation with PE multiple of 29 (5) Regular buy back ensures value addition for share holders (6) Major company in both Sensex & Nifty and hence bought by both Indian as well as Overseas investor. When FII will come back, they buy blue chip shares like TCS first. (7) Operational for more than 5 decades now with consistent performance track ...
High Dividend Paying Stocks in India - IOC
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Indian Oil corporation Limited or IOCL or IOC is the largest fuel retailer of India as we all know with very well established Fuel, Gas & Lubricants distribution network in place. Fuel & Gas in perticular are businesses with very few players in place with very limited competition.
With lot of focus on environmental friendly non fosil fuel now a days, Oil still is the largest supplier of enery and will remains so for at least 2-3 decades. Contribution of non fosil fuel will increase gradually but hunger for energy will also double-triple very soon. So IOC has a Strong Moat which was refered by Great Mr. Warren Buffet. It also has creditial management,Indian Goverment itself being the largest shareholder. so, is IOC a good bet ??? Yes It is according to me.
TTM PE is 26.87 while Industry PE is 38.41 so it is available at a discount. secondly, EPS were significantly affected due to corona virus in Q1 & Q2. There will be some what effect in Q3 results as well which are expected to be declared soon. IOC is the largest Airline Fuel supplier and this business is yet to be normalised. This is the reason for low EPS. However,demand for automobile fuel has increased significantly in last 3-4 months and New vehicles sales have already bettered itself from last year sales figures. Hence fuel consumption will continue to go for sure. However, this stock is still below its highest levels as shown in following chart.
Highest price was 235 of Sep,17 while it is way below currently at 93. This stock has excellent dividend payment record. Its current dividend yield is lowest in last few years at 4.53 %. Their average return are normally double than this. PB ratio is also 0.92 % which shows its current price is even lower than book price. Dividend paid in recent times in as follows.
Conclusion : Historical figures suggests that dividend yield of this company is much higher that Bank FD Rates. Its share price has already corrected a lot in last 2 years. So from here, it is showing good prospect of price improvement and healty dividend. Do your own research before you invest.
Thank you.
Jai Hind.
Links not part of this Blog
https://sharemarketwithgujjubhai.blogspot.com/2021/01/high-dividend-paying-stocks-in-india-rec.html
https://sharemarketwithgujjubhai.blogspot.com/2021/01/high-dividend-paying-stocks-in-india.html
https://sharemarketwithgujjubhai.blogspot.com/2021/01/high-dividend-paying-stocks-in-india-ioc.html
https://sharemarketwithgujjubhai.blogspot.com/2021/01/high-dividend-paying-stocks-in-india_5.html
https://sharemarketwithgujjubhai.blogspot.com/2021/01/list-of-highest-dividend-paying.html
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