Indian stocks are the least attractive in terms of dividend returns in Asia: Report

Indian stocks are the least attractive in terms of dividend returns in Asia, Refinitiv data shows, which could prompt some investors to shy away from the country’s equity markets

Reuters October 15, 2019 14:38:13 IST
Indian stocks are the least attractive in terms of dividend returns in Asia: Report
  • India's large and mid-cap stocks' forward dividend yield ratio stood at 1.7 percent on Tuesday, the lowest in Asia, according to the data

  • Australian stocks led the dividend yields in the region with a ratio of 4.68 percent, followed by Singapore's 4.25 percent

  • Asia's average ratio was 2.7 percent

Indian stocks are the least attractive in terms of dividend returns in Asia, Refinitiv data shows, which could prompt some investors to shy away from the country’s equity markets.

India’s large and mid-cap stocks’ forward dividend yield ratio stood at 1.7 percent on Tuesday, the lowest in Asia, according to the data.

Indian stocks are the least attractive in terms of dividend returns in Asia Report

Representational image. Reuters.

Australian stocks led the dividend yields in the region with a ratio of 4.68 percent, followed by Singapore’s 4.25 percent. Asia’s average ratio was 2.7 percent.

India’s NSE index was up nearly 5 percent this year as of Monday’s close, behind the MSCI Asia-ex-Japan index’s rise of 6.7 percent.

Foreign investors have shunned Indian stocks over the past few months as the economy has shown signs of weakening due to falling demand for consumer goods, such as automobiles, and lower government spending.

Over the past three months, foreigners have sold $3.2 billion worth of Indian stocks, data from the stock exchange showed.

Indian firms are offering lower dividends at a time when global investors are scouring markets for higher-yielding assets, with most of the developed world bond markets offering lower or negative returns.

Updated Date:

also read

Explained: Why Indian employees are set for Asia's largest pay hike in 2023
Explainers

Explained: Why Indian employees are set for Asia's largest pay hike in 2023

The  9.8 per cent salary hike expected for Indian employees is higher than Asian counterparts such as China (5.5 per cent), Vietnam (8 per cent), Thailand (5 per cent), Singapore (4 per cent), Philippines (5.5 per cent), Indonesia (7 per cent), Malaysia (5 per cent) and South Korea (4.5 per cent)

How BTS singer Jin has put spotlight on military service across the world
Explainers

How BTS singer Jin has put spotlight on military service across the world

More than 70 countries worldwide have military training of some sort for their young adult citizens. These include other countries in Asia such as China and Singapore, but also European countries, including Austria, Finland, Norway and Greece

'It's frosty outside': How the polar vortex brought bitter cold to Asia this January
Explainers

'It's frosty outside': How the polar vortex brought bitter cold to Asia this January

Scientists say Asia’s extreme cold is largely the result of the so-called polar vortex, an expanse of cold air that generally circles the Arctic but occasionally shifts south from the North Pole. It was the same weather phenomenon that brought exceptionally cold weather to the US last month