March 13, 2014ICICI Securities Ltd | Retail Equity Research Dividend Yield Stocks Highdividendyieldstocksofferasafehaventoinvestorswheresafetyhasgreaterprioritycomparedtohighreturns. Hence, even if the market remains volatile, going ahead, an investor can still get a decent return on investment, thanks to good dividend yielding stocks. The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment in a weak market. We have short-listed companies that would provide a decent dividend yield in the near future. For this purpose, we have filteredcompaniesthathavemadeatleast75% ofFY14profitsintheninemonthsendedDecember2013andassumed thatthecompanieswouldmaintaintheirFY13dividendpayoutratio.WehaveforecastedtheFY14EPATbytakingthe actualPATofninemonthsendedDecember2013andassumedQ4FY14asanaverageoflastthreequartersnetprofit. Based on the FY14E net profit and FY13 payout ratio, we have calculated the dividend percent for FY14E. Finally, we have deducted the interim dividends already paid in FY14 to arrive at the expected final dividend and dividend yield. Exhibit 1: Expected high dividend yield stocks Co_NamePAT FY13 (|cr)Payout (%)9M PAT FY14 (| cr)PAT Q4FY14E ( | cr)PAT FY14E (| cr)Equity (| cr)Face Value (|)CMP (|)Equity dividend % FY13 Equity dividend % FY14E (based on dividend payout)Interim dividend (%) declared till date for FY14Expected dividend % based on payout %Expected dividend % based on last year dividend (%)Expected dividend Yield (%) based on payout %Expected dividend yield based on last year dividend %GIC Housing Fin 85.0 33.5 72.7 24.2 96.9 53.85 10 103.6 50 60 60 50 5.8 4.8G N F C 273.1 20.6 207.6 69.2 276.9 155.42 10 74.1 35 37 37 35 5.0 4.7SJVN 1052.3 40.3 969.8 323.3 1293.1 4136.62 10 20.7 9.6 13 13 10 6.1 4.6Deepak Fert. 129.3 39.8 152.4 50.8 203.3 88.2 10 118.8 55 92 92 55 7.7 4.6Graphite India 134.4 55.7 126.0 42.0 168.0 39.08 2 80.6 175 239 239 175 5.9 4.3Allahabad Bank 1211.9 26.4 1014.3 338.1 1352.4 544.61 10 82.0 60 66 25 41 35 4.9 4.3T N Newsprint 91.5 40.4 113.1 37.7 150.7 69.21 10 121.7 50 88 88 50 7.2 4.1VST Inds. 126.3 87.9 98.3 32.8 131.0 15.44 10 1590.0 625 746 746 625 4.7 3.9Tata Chemicals 400.4 45.3 193.7 64.6 258.3 254.76 10 284.4 100 46 46 100 1.6 3.5Polaris Finan. 200.8 26.8 153.8 51.3 205.0 49.77 5 143.6 100 110 110 100 3.8 3.5Tata Inv.Corpn. 173.9 60.3 158.2 52.7 210.9 55.1 10 461.1 160 231 231 160 5.0 3.5Torrent Pharma. 432.8 48.4 420.0 140.0 560.0 84.61 5 522.6 460 320 100 220 360 2.1 3.4J & K Bank 1054.9 23.9 931.9 310.6 1242.5 48.48 10 1525.0 500 613 613 500 4.0 3.3South Ind.Bank 502.3 19.3 382.9 127.6 510.5 134.39 1 22.0 70 73 73 70 3.3 3.2Navneet Educat. 106.7 43.1 96.9 32.3 129.2 47.64 2 57.1 89 117 117 89 4.1 3.1Finolex Inds. 136.1 54.6 114.0 38.0 151.9 124.1 10 196.0 55 67 67 55 3.4 2.8Bharti Infra. 1002.5 136.9 1045.5 348.5 1394.0 1888.93 10 203.3 55 101 101 55 5.0 2.7Pun. & Sind Bank 339.2 22.1 264.8 88.3 353.0 275.28 10 41.7 26.8 28 16 12 11 3.0 2.6PTC India 198.3 20.4 182.3 60.8 243.1 296.01 10 63.1 16 17 17 16 2.7 2.5Bank of India 2819.9 22.6 2171.8 723.9 2895.7 642.26 10 199.1 100 102 50 52 50 2.6 2.5Mcleod Russel 273.9 28.5 400.4 133.5 533.8 54.73 5 289.7 140 278 278 140 4.8 2.4Gulf Oil Corpn. 50.2 49.8 40.0 13.3 53.3 19.83 2 93.5 110 134 134 110 2.9 2.4Hind. Unilever 3829.0 126.0 2995.4 998.5 3993.8 216.26 1 559.4 1850 2327 550 1777 1300 3.2 2.3Bajaj Auto 3144.1 45.9 2479.4 826.5 3305.9 289.37 10 1964.3 450 524 524 450 2.7 2.3I D F C 1836.2 22.2 1544.7 514.9 2059.7 1516.22 10 113.6 26 30 30 26 2.7 2.3eClerx Services 171.6 47.4 191.2 63.7 254.9 30.09 10 1182.6 250 402 402 250 3.4 2.1NIIT Tech. 213.2 24.6 168.7 56.2 224.9 60.67 10 408.2 85 91 91 85 2.2 2.1City Union Bank 322.0 15.1 263.7 87.9 351.6 54.27 1 49.5 100 98 98 100 2.0 2.0Indraprastha Gas 354.1 22.6 269.8 89.9 359.7 140 10 272.9 55 58 58 55 2.1 2.0Gateway Distr. 126.7 61.4 95.6 31.9 127.4 108.61 10 149.5 70 72 40 32 30 2.1 2.0Sobha Developer. 217.2 33.4 164.8 54.9 219.7 98.06 10 367.5 70 75 75 70 2.0 1.9Blue Star 39.1 85.2 33.1 11.0 44.1 17.99 2 169.0 159 209 209 159 2.5 1.9Hinduja Global 90.6 49.3 134.7 44.9 179.5 20.62 10 557.0 200 429 100 329 100 5.9 1.8FDC 155.2 27.2 132.6 44.2 176.8 17.78 1 123.0 220 271 271 220 2.2 1.8Mahindra Holiday 90.9 41.9 70.2 23.4 93.5 88.78 10 235.0 42 44 44 42 1.9 1.8Vardhman Textile 356.4 12.4 497.6 165.9 663.4 63.65 10 342.9 60 129 129 60 3.8 1.7Kalpataru Power 129.5 17.7 99.4 33.1 132.5 30.69 2 87.9 75 76 76 75 1.7 1.7JM Financial 182.9 41.6 150.1 50.0 200.1 75.53 1 26.8 90 110 45 65 45 2.4 1.7LIC Housing Fin. 1047.5 18.8 947.2 315.7 1262.9 100.93 2 227.5 190 235 235 190 2.1 1.7Cairn India 12056.4 18.8 9396.4 3132.1 12528.5 1910.9 10 329.5 115 123 60 63 55 1.9 1.7Yes Bank 1300.7 17.0 1187.6 395.9 1583.4 360.63 10 365.3 60 75 75 60 2.0 1.6 Source: Capitaline, ICICIdirect.com Research ICICI Securities Ltd | Retail Equity Research Page 2 Pankaj PandeyHead Research pankaj.pandey@icicisecurities.com ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC Andheri (East) Mumbai 400 093 research@icicidirect.com Disclaimer The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmittedto,copiedordistributed,inpartorinwhole,toanyotherpersonortothemediaorreproducedinanyform,withoutpriorwritten consent of ICICI Securities Ltd (I-Sec). 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