Dividend champion small-cap stock has given a dividend yield of 9.29 per cent; watch out

The strong price and volume action has resulted in the stock scaling to a fresh 21-week high. 

Banco Products (India) Ltd is a leading designer and manufacturer of engine cooling modules for automotive and industrial applications. The company combines the power of innovation and product application engineering to develop products which deliver high-performance solutions for their customers in OEM and aftermarket segments. The company enjoys the status of a strategic supplier to various esteemed Original Equipment Manufacturers as a new product development partner wherein cooling products fall into the category of proprietary parts. 

The stock has jumped more than 10 per cent in the last week along with robust volumes. The strong price and volume action has resulted in the stock scaling to a fresh 21-week high. 

The stock from a technical standpoint is comfortably placed above its key moving averages, around 7 per cent and 14 per cent from 50 and 200-DMA. It is exhibiting a fair relative strength (RS) rating of 70 and the buyer demand is B+ which is evident from recent demand for the stock. 

Talking about the unique proposition of this stock, it has consistently rewarded its shareholders with dividends since 2003 and what’s cherry on the top is the mouth-watering dividend yield of 9.29 per cent. 

The stock in the past 12 months has declared a dividend amounting to Rs 20 per share at the current share price of Rs 215.30. This results in a dividend yield of 9.29 per cent.