As the broader markets have corrected quite sharply recently, it might be a good time to keep a tab on your favorite dividend shares. In case you want to find some good quality stocks in the midcap space, here’s a list of the top 3.
Oil India Limited
Oil India Ltd (NS:OILI) is an oil and gas exploration company with a market capitalization of INR 32,738 crore and currently trades at a very low TTM P/E ratio of 4.45. It is one of the few midcaps, that are trading at less than their book value, with a PB ratio of 0.78.
As oil prices remain elevated, Oil India will likely be benefited which will be seen in its Q2 FY24 earnings report. Currently, the stock is trading at an inflation-beating dividend yield of 6.62%, the highest in the entire midcap space. More importantly, the fair value of the stock, as per InvestingPro+ is INR 416.5, depicting a 37.5% upside, from the CMP of INR 302.85.
Embassy Office Parks REIT
Embassy Office Parks REIT (NS:EMBA) is a real estate investment trust (REIT) with a market capitalization of INR 32,216 crore. As the Covid-19 pandemic is now out of the scene, and work from the office is back to reality, this REIT will keep generating cashflows in the form of rent from corporates. Its NCDs are also rated AAA by CRISIL (NS:CRSL), denoting the financial stability of the REIT.
It reported a net profit of INR 216.67 crore in Q2 FY24, compared to INR 128.46 crore in the same period last year. Currently, it is trading at a very good yield of 6.39%, making it a good option for regular income seekers.
Oracle Financial Services Software Limited
The IT sector has noticeably underperformed the broader markets for a long while now. However, holding some high dividend stocks would definitely have minimized the drawdowns and Oracle Financial Services Software Ltd (NS:ORCL) is one such counter, with a market capitalization of INR 34,061 crore.
The stock has a decent valuation gap, as its fair price as per InvestingPro+ is INR 4,570, depicting a potential of 17.2% capital growth. More importantly, it is famous for its dividend and currently trading at a yield of 5.71%.
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