Allahabad Bank, Another high dividend yielding stock worth investing

Allahabad Bank, Another high dividend yielding stock worth investing

BSE: 532480 

Banking sector always been my favorites for when the stock market starts moving up, banking sector leads from the front and given the market scenario market seems to be trading in oversold zone and thus it is most likely that the Dalal Street would move up in the next few trading sessions. This is a short term scenario and good for making quick money but I would rather suggest in Allahabad Bank for the long term as it is a high dividend paying stock.

Currently the stock is trading around Rs.125 which is close to its fifty two weeks low and in my opinion it is just about the right time to invest as well. If you are looking for short term profit you can invest around Rs. 120-122 and come out around Rs.130 but I would rather suggest in making long term investment as it has a history of paying good dividends and fundamentally it is strong sector, so when the market starts moving up, Allahabad bank surely is going to be among the few banking stocks to surge high.

With a face value of Rs. 10, Allahabad Bank declared a dividend of 60 % which amounts to Rs.6 per share. So if you buy 100 shares of Allahabad Bank at the current market price , you would be investing some Rs.12000  and even if the stock doesn’t move up you have the assurance of receiving dividend from the investment which can be anywhere from Rs.550-Rs.700 which is almost equivalent to keeping you money in a bank (Savings account). So why lock up your money in the bank when you can make better money in investing in stocks likes Allahabad bank.

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