KSE INVESTMENT TIME

Keeping in view the recent downfall of KSE100 Index from 12,576 level on Jul 5, 2011 to 10,900 level currently trading (-13.3%), dividend yielding stocks have become very attractive compared to fixed income investments based on forward earnings of CY11/FY12. As per our analysis multiple stocks offer dividend yield above 15% on their future earnings compared to fixed income paper yields in the range of 13-14%, moreover these stocks are trading on low P/E multiples. The decline in price of these stocks from their recent highs ranges from (-3% to -18%). We strongly recommend investors to invest in promising dividend yielding stocks that also offers capital gain on top of it. Following table shows the prospective yields on selected stocks.