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Dividend-paying companies offer a safer bet with capital gains uncertainty

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Dividend-paying companies offer a safer bet with capital gains uncertainty
ET Intelligence Group: Amid rising uncertainty of capital gains on equities in a volatile market, dividend-paying stocks are back in the limelight. Select companies, especially those with a mature business model and, therefore, having steady cash flows tend to pay dividends regularly in a bid to return the excess cash generated from the operations to shareholders. However, merely considering the absolute dividend payout per share will not reveal whether a stock looks attractive at its current price. For that, dividend yield comes in handy. It is calculated as the annual dividend per share divided by the stock price. The ratio makes it easier to compare stocks across sectors to arrive at an investment decision.

ETIG has identified 10 stocks offering dividend yields of 4% or more based on FY25 payouts: Vedanta (6.3% yield), Coal India (5.7%), REC (5.4%), Hindustan Zinc (5.3%), GAIL (5.1%), ITC (4.8%), ONGC (4.6%), RITES (4.5%), NMDC (4.2%), and Oracle Financial Services Software (4.1%).

Dividend-paying Cos Offer a Safer Bet with Cap Gains UncertainAgencies

The select list of cos includes Vedanta, Coal India, Hindustan Zinc, ITC and GAIL

A caveat for investors looking at dividend yields – the current yields are based on the past year’s dividend payouts. While companies do strive to maintain a stable dividend payout relative to net profit on a longer horizon, fluctuations due to government policies, economic and geopolitical uncertainties cannot be ruled out especially when such aberrations tend to affect profitability. For instance, ITC’s stock currently trades near the 52-week low amid a sharp rise in tobacco excise duties since February 1, which has affected investor sentiment. While the company continued to declare an interim dividend of ₹6.5 on January 29, same as in the previous year, future payout will depend upon how well it can protect profitability amid a higher excise duty regime.

In addition, effective yields will vary depending on investors’ marginal tax rates, as dividends are taxed in shareholders’ hands. For instance, a taxpayer facing a marginal tax rate of 30% and 4% educational cess will receive an effective dividend yield which will be over two-third of the calculated yield. For such a taxpayer, Vedanta’s effective dividend yield will be around 4.3%.

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Also, the list does not include companies such as TCS, HCL Technologies, and UTI AMC, where yields are high due to special dividends. To be sure, companies operating in the sectors with high cash generation such as the IT sector tend to distribute special dividends more often than others.


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Popular baby food brand hit by rat poison scare, suspect in custody

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Rat poison found in baby food prompts recall and warning

A suspect has been arrested after rat poison was found in baby food jars in parts of Europe, sparking a chilling safety scare.

HiPP, a Germany-based organic baby food maker, said Saturday that a man has been arrested in connection with jars contaminated with rat poison in Austria, Slovakia and the Czech Republic.

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“We are greatly relieved by this development and thank the investigative authorities for their dedicated work,” the company said, while noting more updates will follow.

The suspect, who is 39 years old, is currently being questioned by authorities, The Associated Press reported, citing the Burgenland State Criminal Police Office.

POPULAR BABY FOOD BRAND HIT BY ‘CRIMINAL ACT’ AS RAT POISON FOUND IN SEIZED JAR

a hipp baby food jar containing tomato-based puree

HiPP, a Germany-based organic baby food maker, said Saturday that a man has been arrested in connection with jars contaminated with rat poison across Central Europe. (Schöning/ullstein bild via Getty Images / Getty Images)

Five tainted jars were pulled from shelves in Austria, the Czech Republic and Slovakia before anyone consumed them, but authorities believe at least one more contaminated product could still be out there, according to BBC News.

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The investigation began April 18, after poisoned baby food was discovered in a jar purchased from a supermarket in Eisenstadt, Austria. 

Forensic testing confirmed rat poison had been mixed into the jar, according to the Burgenland State Criminal Police Office.

BABY FORMULA RECALLED AS INFANT BOTULISM OUTBREAK GROWS

baby food stacked on grocery shelf

The investigation into the contamination began April 18. (Aaron Chown/PA Images via Getty Images / Getty Images)

HiPP recalled all its baby food jars from SPAR supermarkets in Austria, while retailers in Slovakia and the Czech Republic cleared the brand from shelves, The Associated Press reported.

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The case also involves attempted extortion, according to HiPP.

“The blackmailer sent a message to a non‑personalized shared mailbox that is checked at longer but regular intervals as part of our standard operating procedures,” the company said. “As soon as HiPP became aware of the message, the company immediately informed the police authorities responsible.”

CINNAMON POWDER RECALLED ACROSS 14 STATES OVER POTENTIAL ‘ELEVATED LEVELS OF LEAD’

police lights

The Burgenland State Criminal Police Office said a suspect was being questioned. (iStock / iStock)

HiPP is urging consumers to watch for warning signs — like damaged lids or strange odors — and to not use products that have any irregularities.

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The Burgenland State Criminal Police Office and HiPP could not immediately be reached by FOX Business for comment.

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Five9, Inc. 2026 Q1 – Results – Earnings Call Presentation (NASDAQ:FIVN) 2026-05-03

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Q1: 2026-04-30 Earnings Summary

EPS of $0.76 beats by $0.08

 | Revenue of $305.32M (9.16% Y/Y) beats by $5.25M

This article was written by

Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team

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Former New York Mayor Giuliani hospitalized in critical condition

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Former New York Mayor Giuliani hospitalized in critical condition


Former New York Mayor Giuliani hospitalized in critical condition

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Asia’s bond markets shake off war angst with record local issuance

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Asia’s bond markets shake off war angst with record local issuance


Asia’s bond markets shake off war angst with record local issuance

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GameStop CEO Ryan Cohen makes unsolicited offer to buy eBay for about $56 billion, WSJ says

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GameStop CEO Ryan Cohen makes unsolicited offer to buy eBay for about $56 billion, WSJ says


GameStop CEO Ryan Cohen makes unsolicited offer to buy eBay for about $56 billion, WSJ says

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Amsterdam bans public adverts for meat and fossil fuels

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Amsterdam bans public adverts for meat and fossil fuels

Amsterdam has become the world’s first capital city to ban public advertisements for both meat and fossil fuel products. Since 1 May, adverts for burgers, petrol cars and airlines have been stripped from billboards, tram shelters, and metro stations.

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Mattel, Inc. 2026 Q1 – Results – Earnings Call Presentation (NASDAQ:MAT) 2026-05-03

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OneWater Marine Inc. (ONEW) Q1 2026 Earnings Call Transcript

Q1: 2026-04-29 Earnings Summary

EPS of -$0.20 beats by $0.01

 | Revenue of $862.20M (4.31% Y/Y) beats by $53.23M

This article was written by

Seeking Alpha’s transcripts team is responsible for the development of all of our transcript-related projects. We currently publish thousands of quarterly earnings calls per quarter on our site and are continuing to grow and expand our coverage. The purpose of this profile is to allow us to share with our readers new transcript-related developments. Thanks, SA Transcripts Team

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The threat to summer holidays looming with jet fuel shortages

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The threat to summer holidays looming with jet fuel shortages

Step on to the tarmac at any major airport around the world, and you’ll notice an unmistakable smell. A slightly sweet, oily scent, redolent of old workshops or antique paraffin lamps. It is as much part of the travelling experience as lukewarm coffee and queues at passport control. It is, of course, the pervasive smell of jet fuel.

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United Airlines plane hits light pole on landing at Newark airport

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United Airlines plane hits light pole on landing at Newark airport

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Oil falls after Trump says US would help free ships stranded in Strait of Hormuz

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Oil falls after Trump says US would help free ships stranded in Strait of Hormuz


Oil falls after Trump says US would help free ships stranded in Strait of Hormuz

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