Strategy Guide โ†—

Value Picks Screener NSE: Low PE & High Dividend Yield Stocks

Discover how to combine low price-to-earnings ratios with high dividend yields to identify value picks on the NSE. This guide walks you through the QUANTSCASE value picks screener with specific thresholds and real examples.

Strategy Guide โ€” Evergreen guide for NSE traders. For educational purposes only, not financial advice.

The value picks screener NSE low PE dividend is a powerful tool for finding fundamentally strong stocks trading at a discount while offering consistent income. By combining a low PE ratio with a high dividend yield, you can uncover hidden gems that provide both capital appreciation and regular payouts. For a broader approach to screening, explore our techno-fundamental CANSLIM guide.

15
PE Ratio Threshold
2.5%
Min Dividend Yield
1.5
Debt-to-Equity Max
10%
5-Year Dividend Growth

Why Low PE & High Dividend Yield Matter for Value Picks

A low PE ratio suggests a stock is undervalued relative to its earnings, often indicating a margin of safety. When combined with a high dividend yield, it signals that the company is not only cheap but also shareholder-friendly, returning profits to investors. This dual filter helps avoid value traps where low PE is due to declining earnings. For more on identifying strong trends, see our trend following guide.

High dividend yields provide a steady income stream, reducing reliance on price appreciation alone. In volatile markets, such stocks often act as defensive plays, cushioning portfolio drawdowns. Historically, NSE stocks like Coal India (PE ~8, yield ~5%) and Power Grid Corp (PE ~12, yield ~3.5%) have demonstrated this combination effectively.

๐Ÿ“Œ Key Insight
A PE below 15 with dividend yield above 2.5% historically outperforms pure low PE or high yield strategies by 3-5% annually on the NSE.

How to Use the Value Picks Screener on QUANTSCASE

1
Set PE Ratio Filter โ€” Set the PE ratio range to 0โ€“15 to exclude loss-making and overvalued stocks. This captures companies trading at a discount to their earnings.
2
Set Dividend Yield Filter โ€” Set minimum dividend yield to 2.5%. This ensures the stock provides meaningful income, not just a token payout.
3
Add Debt-to-Equity Constraint โ€” Set maximum debt-to-equity to 1.5 to avoid highly leveraged companies that may cut dividends during downturns.
4
Apply 5-Year Dividend Growth โ€” Filter for stocks with at least 10% dividend growth over 5 years. This confirms sustainable payouts. Use the Fundamental Value Picks Screener to automate this.
5
Review and Sort Results โ€” Sort by dividend yield descending. Check the top 10-15 stocks for consistent earnings and positive free cash flow before investing.
๐Ÿ’ก Pro Tip
Combine this screener with a volume filter (e.g., average volume > 500,000) to ensure liquidity and avoid illiquid stocks that may have distorted PE or yield data.

Key Indicators for Value Picks Screening

IndicatorThresholdSignalWhy It Matters
PE Ratio0โ€“15โœ… BullishLow PE indicates undervaluation; avoid negative PE (loss-making).
Dividend Yieldโ‰ฅ 2.5%โœ… BullishHigh yield provides income; yields above 8% may be unsustainable.
Debt-to-Equityโ‰ค 1.5โœ… BullishLow debt reduces risk of dividend cuts during stress.
5-Year Dividend Growthโ‰ฅ 10%โšก WatchConsistent growth confirms management commitment to dividends.
Free Cash Flow Yieldโ‰ฅ 5%โœ… BullishPositive FCF ensures dividends are covered by cash, not debt.
PEG Ratio< 1.0โŒ BearishAvoid stocks with PEG > 2 โ€” growth may not justify valuation.
โœ… Value Picks Entry Checklist
โœ“PE ratio between 0 and 15
โœ“Dividend yield โ‰ฅ 2.5%
โœ“Debt-to-equity โ‰ค 1.5
โœ“5-year dividend growth โ‰ฅ 10%
โœ—Avoid stocks with negative free cash flow
โš ๏ธ Common Mistake
A very high dividend yield (above 8%) can signal a falling stock price or an unsustainable payout. Always check the payout ratio โ€” it should be below 80% for safety.

Try It on QUANTSCASE

Use our pre-built screeners to instantly find value picks on the NSE. Start with the Fundamental Value Picks Screener and refine using the filters below.

Fundamental Value Picks โ†’
Filters low PE, high dividend yield, and low debt-to-equity automatically.
CANSLIM Screener โ†’
Combines fundamental strength with technical momentum for growth at reasonable price.

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This guide is for educational purposes only and does not constitute investment advice. Always do your own research before investing.