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Synopsis
High dividend yielding stocks are not something which interests most investors. One of the arguments against investing on the basis of dividend yield is that the stock market is about capital gains, hence everyone is looking for capital gains. However, there are many advantages to having high-dividend-yielding stocks in one’s portfolio. Some of which are felt when markets correct sharply, pretty much similar to what we have seen in the last couple of weeks. For the purpose of this report, we had kept the dividend yield of at least 7 percent as a benchmark. The reason for this is that dividend yield should be higher than the interest rate provided by banks on FDs. Another condition was that the company should have a track record of paying dividends, without interruption, for at least four of the last five years.
By , ETMarkets.com
9 mins read, Last Updated:
Having a stock which is giving a dividend yield of more than 9 percent and the company has not missed dividend in the last six years, is probably not a bad idea. However, high dividend yielding stocks are not something which interests most investors. Everyone is looking for capital gains. While there is nothing wrong in focussing on capital gains. However, the benefits of investing on the basis of dividend yield come to fore the moment NIFTY and
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