There are many speculations and views provided by SEO experts and professional bloggers regarding this issue. Commonly, we will end up not knowing which one is true or false. So, recently, I have done some research on nofollow link value in Google’s eye. Does having a nofollow anchored link from PR10 website helps you to increase page rank or increase google SERP ranking? The answer is a BIG NO. Nofollow links does not pass any value towards page rank and will not increase serp ranking in google search engine.
However, some may have experienced SERP increase recently due to anchored keyword nofollow links. That is true, but it was just a glitch / “bug” google had earlier days and they have removed it now. Only dofollow links will pass page rank value and helps serp ranking increase in google. If you have been doing link building for google search engine optimization, you need to get dofollow backlinks. Make sure to check page’s PR value and the number of dofollow outgoing links. Any backlinks from bad neighbourhood definitely gonna hurt our ranking, especially if it is dofollow links.
This is an excerpt from recent Matt Cutt’s blog:
Ref: [*] Nofollow links definitely don’t pass PageRank. Over the years, I’ve seen a few corner cases where a nofollow link did pass anchortext, normally due to bugs in indexing that we then fixed. The essential thing you need to know is that nofollow links don’t help sites rank higher in Google’s search results from Matt Cutts – Page Rank Sculpting