In this article, we will discuss 4 high-dividend yield stocks in which one can invest in the year 2022. So, let’s get started.4 High Dividend Yield Stocks:
1) Vedanta Limited:
- Vedanta Limited is having a dividend yield of over 18%.
- Recently, Vedanta announced that its parent company i.e., Vedanta Resources Limited will invest in a semiconductor plant along with Foxconn.
- Vedanta Resources which is headquartered in London, United Kingdom can easily raise funds via debt option, but since they are having a good earning subsidiary in India (Vedanta Limited), and hence Vedanta Limited has started rising dividend yield rather than retaining the earnings.
2) ICICI Securities:
- ICICI Securities is having a dividend yield of around 7.6%.
- Due to increased investors in the market owing to the market boom, the broking business of ICICI Securities has grown significantly and since the company does not need any capital requirement for further business expansion and since there are not many growth plans in the industry, the company raised its dividend yield.
3) Indus Towers:
- Indus Towers is having a dividend yield of around 5.7%.
- Here, Bharti Airtel and Vi are 2 key players and are 2 key customers of the company. Vi is still having some stake of around 3.1% in Indus Tower.
- Since both telecom companies require some cash for various purposes, Indus Tower might continue to give high dividends. Here, if Vi gets completely out, then Bharti Airtel might have some aggressive plans for Indus Tower then this high dividend yield stock might turn low.
4) Tata Steel:
What Should Investors Do:
- Tata Steel has given a dividend yield of around 5.1%.
- In the recent 1-2 years, the commodity cycle witnessed a great move and huge uptrend, but does not seems to be turning into a super cycle.
- In the commodity market, there are huge opportunities but there are several challenges ahead.
- Another angle behind the high dividend yielding of Tata Steel is that the parent group company Tata Sons requires cash inflow to fund their other expansion plans like the acquisition of Air India, etc.
Generally, a company that does not have big growth opportunities, then they start rewarding shareholders by giving a high dividend yield. One should understand that these high dividend yield stocks do not have much scope for capital appreciation and hence one should invest in these stocks as per their risk profile. Do follow due diligence before making any investment decisions.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.