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Synopsis
From being the most sorted set of stocks in the first half of 2024, PSU stocks are again being relegated to the bad books of the street. This trend of shunning PSU stocks received a boost with the government capping its infra spending at pretty much the same limit in Budget 2025. After a phase of correction and underperformance, some PSU stocks have, however, reached a stage where dividend yield is good enough reason to hold them. Yes, the path of capital appreciation may still not be as clear, but the dividend yield is good enough to have them on your radar as there are some institutional investors who make decisions based on dividend yield and might turn buyers.
When it came to investing on the basis of high dividend yield, it was PSU stocks that topped the list. But then came the rally in the PSU space, and it was not about dividend yield but capital gains. But the fact is that dividend yield will act as cushion as investors chase capital gains. A stock which is currently available at dividend yield of close to 5% is not bad for an investor who is keen to have some margin of safety at a time when the
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