3 stocks with a dividend yield exceeding 2.5% and a beta below 0.6
3 stocks: In today’s volatile market environment, low-volatility stocks that offer steady dividend yields above 2.5% present a compelling investment opportunity. These defensive investments have beta values below 0.6, providing reduced market sensitivity while generating reliable income streams. This strategy is particularly appealing to risk-averse investors seeking stability and consistent returns during market turbulence.
Here is a list of stocks with dividend yields above 2.5% and beta values below 0.6:
1. NHPC Limited
NHPC Limited, established in 1975, is a leading Indian public sector enterprise focused on hydroelectric power generation. The company also ventures into renewable energy sources like wind, solar, and geothermal, with 6,717 MW of hydro capacity and ongoing projects to expand its energy portfolio.
In FY2024, NHPC Limited reported revenue of Rs. 9,632 crore, a 9.19% decline from the previous year. Profits for FY2024 were Rs. 4,028 crore, reflecting a 5.47% decrease compared to the previous year. The stock has a dividend yield of 2.62%, a 3-month beta of 0.38, and a 3-year compound annual growth rate (CAGR) in return on equity (ROE) of 10%.
The stock price is Rs. 80.11, with a daily movement up by 1.62%. It has a 1-year return of 9.74% and an impressive 5-year return of 230%.
2. Sanofi India
Sanofi India, a subsidiary of the global healthcare leader Sanofi S.A., has been operating in India since 1956. The company produces pharmaceuticals across therapeutic areas like diabetes and oncology, focusing on innovative solutions, patient access, and research and development to improve healthcare outcomes in India.
In FY2024, Sanofi India reported revenue of Rs. 2,851 crore, a 2.92% increase from Rs. 2,770 crore in FY2023.
In the fiscal year 2024, profits for the company amounted to Rs. 603 crore, representing a slight decrease of 2.90% from the previous year’s Rs. 621 crore. The stock boasts a dividend yield of 3.07%, a 3-month beta of 0.15, and a 3-year compound annual growth rate (CAGR) in return on equity (ROE) of 33%.
Currently, the stock price stands at Rs. 5,440, experiencing a daily decline of 0.05%. Its 1-year return sits at -34.8%, while the 5-year return is at -19.09%.
Moving on to Swaraj Engines Limited, established in 1985, the company specializes in manufacturing diesel engines for Swaraj tractors. Their product range includes engines from 22 to 65 HP along with cutting-edge components. With state-of-the-art production facilities, SEL is well-equipped to cater to the increasing demand in the agricultural machinery sector.
For the fiscal year 2024, the company reported revenue of Rs. 1,419 crore, marking a marginal 0.21% decrease from the previous year’s Rs. 1,422 crore. Profits for the same period amounted to Rs. 138 crore, showcasing a 2.99% increase from Rs. 134 crore in FY2023. The stock offers a dividend yield of 2.93%, a 3-month beta of 0.37, and a 3-year CAGR in ROE of 39%.
The current stock price is Rs. 3,240, witnessing a daily increase of 6.45%. Its 1-year return stands at 39.3%, while the 5-year return is an impressive 149%.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.