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The ongoing carnage in the Indian markets has taken a toll even on stocks that have absolutely nothing to do with the Adani Group fiasco. Hindenburg’s report has dented the overall market’s sentiments, leading to panic-selling across sectors.
However, if you are a long-term investor, these are the times that can be capitalized on to accumulate your favorite shares. For dividend lovers, here’s a list of three stocks that should be on your radar.
Indian Oil Corporation Limited
Indian Oil Corporation Ltd (NS:) is an oil marketing and refining company, with a market capitalization of INR 1,16,353 crores and currently trades at a P/E ratio of 4.64. The stock is down about 2% this week and is yet to declare its Q3 FY23 earnings, making it a good bet for investors looking for a payout in the immediate future.
The company has been reporting losses for the last two quarters as the government’s decision to cap the retail prices wiped out all profits. However, this time as international oil prices are significantly down, their profitability is expected to return. The stock is currently trading at a dividend yield of 9.94%.
Coal India Limited
The next one on the list is Coal India Ltd (NS:) which as a market capitalization of INR 1,39,194 crores. The best part about this company is that it is almost a monopoly business and holds a majority of the market share in the coal mining space. It is also a government-owned entity, which ensures sustained dividend payout to shareholders as dividends are an important source of revenue for the government.
The company has been increasing its dividend payout for the last three consecutive years, shelling out INR 17 per share in FY22. The current dividend yield of the sock stands at 7.53% and it hasn’t skipped paying dividends in over a decade. FIIs have increased their stake in Coal India, from 6.73% in the September 2022 quarter to 7.86% in the December 2022 quarter.
Indus Towers Limited
The last name on the list is Indus Towers Ltd (NS:), which is a telecom infrastructure provider, having a market capitalization of INR 42,550 crores. The stock has taken a decent hit, tanking around 20% this week as it reported its first-ever quarterly loss of INR 708.2 crores in Q3 FY23. The company is facing trouble in securing payments from Vodafone Idea (NS:), which is one of its major customers and it is in financial distress.
However, on the flip side of it, the stock is now available at a P/E ratio of only 6.68, while the plunge has shot up the dividend yield to 6.97%. This is a bit of a risky bet as there is a question on the financial sustainability of Vodafone Idea, but I believe, that the government’s support would keep Vodafone Idea afloat as its winding up of the business would further consolidate the industry to only two major players.
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