Undervalued and High Dividend stocks | Fusion - WeRIndia

At present, dividends are tax free for investors. However, from April 1, 2016, they will be taxable if the dividend is more than Rs.10 lakhs. It has been reported that many companies are rushing to declare dividends before March 31, 2016. Here are some stocks which are great choices in terms of dividends.

With a dividend yield of nearly 9 per cent, NMDC is the favourite choice of many investors. It can provide excellent returns if the commodity prices recover.

Cairn India offers dividend at the rate of approximately 7 per cent. The stock of this company is a good bet among the crude oil shares for the investors. The share price will go high after the recovery of crude oil prices.

Oil India may yield dividend at the rate of 6.5 per cent if it maintains the same dividend like the previous year. The dividend yield is almost equal to the interest rate of bank fixed deposits considering the after tax shield. You can expect sharp rise in the stock if the crude oil prices recover in the future.

Coal India yields dividend at the rate of 6 to 6.37 per cent. This is not a losing stock even if the price falls a bit.

JB Chemicals is another stock investment you can consider with a dividend yield of 5.5 per cent. The current P/E ratio indicates that the company is doing well when compared to its past trends and it might prospect in the future if the company is advancing.

Karnataka Bank is a great choice as it has a good dividend yield of almost 5.14 percent. Furthermore, the stock is highly undervalued.

With a dividend yield of 5 per cent, Federal Bank stock is another good choice for the investors. Though the stock has fallen sharply like its peers, it has a good potential to yield good returns in the future.

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