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Part A conventional, Part B unconventional: Dividend yield & capital gains. 5 stocks with dividend yield of 5-8% & upside potential of up to 35%

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There are many MF schemes – maybe not those headed by star fund managers – whose stated objective at the time of the new fund offering (NFO) is clear: To invest in stocks with a certain dividend yield. In a bull market, these MFs may find it difficult to buy such stocks. But as soon as the bears arrive, they not only find the opportunity to do so, but also become bottom makers. Now, bottom makers are buyers who ensure that a stock does not fall below a certain level – in this case, these MFs buy some stocks when they fall to a certain level. Because, at that level, dividend yield becomes reason enough to buy them. Two months back it was tough to find a stock with a dividend yield matching the interest rate of a savings bank account. Today there are some matching rates offered by fixed deposits. But they come with more than the usual caveats.

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