Dividend Yield Development : high dividend-yielding stocks to investment

Dividend Yield Development : high dividend-yielding stocks to investment

-  Kothari Products is a diversified trading company engaged in the import and export of various products, commodities, minerals, metals and petroleum products. It is also involved in real estate development. Kothari is a zero-debt cash-rich company paying dividends at an average rate of 100% of the equity. Its net sales for the first half of FY11 increased four fold. However, its profit during the period halved over the previous year. Considering its dividend history and reserves, the likelihood of the company maintaining its dividend rate is high.

-  Bangalore-based Mac Charles India is a profitable hospitality company that pays consistent dividends. Despite the capital-intensive nature of hotels business and a small-size hotel, the company, , which is known for Le Meridian brand, has maintained a healthy net profit margin of 22.6% during the 12 months ended September 2010. In the past five fiscals, the company maintained an average pay-out ratio of over 22%. As the hotels industry regains momentum on the back of a rise in business travel, Mac Charles would benefit from its presence in Bangalore. It is expected to end the fiscal with a net profit of more than Rs 30 crore. With almost no debt to service, the company is likely to maintain its dividend rate at 100% of the equity.

- 42% was the one-year (August 2010-August 2011) return delivered by e-gold compared with 40% for gold ETFs. While the marginal difference in returns can be attributed to the cost-effectiveness of e-gold, both these avenues provide ease of investing by allowing people to hold gold in the demat form. However, each product has its pros and cons—while gold ETF is a more tax-efficient means of investing, e-gold offers the option of physical delivery. This is perhaps the reason experts remain divided on which route makes for better investment, finds out ET. Based on their opinion and depending on your individual needs, find out whether you should go for e-gold or gold ETF