As the earnings season is going on many stocks are lining up to shell out dividends. One such company is ICICI Securities (NS:) Limited. It is a stock-broking firm and has a market capitalization of INR 23,383 crore and trades at a TTM P/E ratio of 13.78.
The stock is currently quoting at a very healthy dividend yield of 5.29% which is one of the best among small-cap stocks. As the trend of options trading is growing at an exponential pace in India, institutional investors are aggressively exploring this space. FIIs have ramped up their stake every quarter in the company from 7.76% in December 2022 to 10.43% in March 2024.
Investors looking to add such stocks to their portfolio should also look at ProTips for useful information. For eg. in this case, ProTips says that the company has been paying dividends for the 7th consecutive year, which is quite useful information.
Image Source: InvestingPro+
The trend in payouts can also be seen in a graphical format under the “Dividends” section on InvestingPro+. As you can see, from 2108 to 2021, the DPS (dividend per share) had increased aggressively, but after that, it hit a plateau and fell in the next 2 years.
Image Source: InvestingPro+
The best way to time the entry in such stocks is via dividend yield charts. When the yield shoots up, either due to an increase in the DPS or a fall in the share price. When the chart goes up, meaning the yield is moving higher, that is the time to consider making an investment decision.
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In this case, as the yield has shot up aggressively and is at the highest level in over a year, this could probably be a good time to add it to your dividend portfolio.
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X (formerly, Twitter) – Aayush Khanna
