The Hindu Business Line : Dividend season begins for equity/balanced funds

Dividends are making news again in the realm of equity and balanced funds, thanks to the pay-outs that have been declared by a number of players. Several of these will be paid out this week.

DSP Merrill Lynch MF, Canbank MF and Standard Chartered MF have all set record dates between August 22 and August 25. The dividends in these cases range from 15 per cent to 40 per cent. These will join the likes of UTI MF and Sundaram MF, both of which have paid dividends very recently.

While Canbalance has declared a dividend of 15 per cent, CanExpo will pay 25 per cent to unit holders. DSP ML MF has announced a 40 per cent dividend in its balanced fund, which will be the fourth payment by the fund after its last payout in late 2004.

Standard Chartered MF's Classic Equity Fund, which was launched not long ago, will have its first-ever dividend (15 per cent) on August 22.

Among the very recent payouts was the one by UTI Mid Cap Fund, which handed out 30 per cent to unit holders. Also, Sundaram Select Mid Cap offered 20 per cent to investors. Both had fixed August 18 as the record date. In fact, Sundaram Tax Saver will pay 15 per cent on August 25, which will be its fifth payment since inception.

An estimate worked out by SKP Securities, an MF distributor, DSP ML Balanced Fund, considering its current NAV of Rs 23-plus, will offer a dividend yield of about 17 per cent to investors. Standard Chartered Classic Equity Fund will provide a dividend yield of approximately 11.5 per cent. The fund's NAV stands at roughly Rs 13.

According to Value Research, some of the other funds that have lately made it to the dividend list are Prudential ICICI Power (20 per cent), Reliance Equity Opportunities (10 per cent), Principal Resurgent India Equity (50 per cent) and Tata Dividend Yield (10 per cent).

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