The stock of Jammu & Kashmir Bank will be in demand as the company hiked its dividend payout this year. The board of directors of the Bank on Saturday recommended a dividend of 335 per cent, which translates to Rs 33.5 (on Rs 10 face value) to the shareholders for 2011-12. The Bank has consistently been increasing the dividend pay out. Last year, the bank had paid Rs 26 a share and the previous year (2000-10), it was Rs 22. With the current bearish market condition, dividend paying companies offer the best resistance to downward price pressure. Dividend yield is a way to measure how much cash one gets as return for each rupee invested in equity share. The bank' dividend yield works to about 4. The dividend announcement is subject to the approval of the shareholders at the ensuing AGM scheduled to be held on July 14. The bank also proposed to issue dividend warrants to its shareholders on July 23.

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