Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

How to Invest in Dividend Stocks

When it comes to investing in the stock market, people generally aim at earning through capital appreciation. They often forget that they can earn regular payments in the form of dividends too.

This type of investing is called dividend investing.

While companies are not under any obligation to pay dividend, many companies pay dividend regularly in order to reward their shareholders.

Their dividend paying track record is sometimes the sole reason people may invest in them.

Hence, adding dividend paying stocks to your portfolio is like having a secret weapon in your armoury. But how can you earn this regular income?

There are two ways to invest in dividend stocks:

There are many funds out there which invest in dividend companies. These mutual fund schemes are called dividend yield funds.

HDFC Dividend Yield Fund, Sundaram Dividend Yield Fund, UTI Dividend Yield Fund, among others are some of the dividend yield schemes.

Now, let us look at some points while investing individually in dividend stocks.

Selecting a dividend paying stock is easier said than done. But one probable way to select dividend stocks is by answering the following four questions:

Dividend yield is calculated to see how much percent of stock price is paid to shareholders. Dividend yield is arrived by dividing annual dividends per share with current market share price.

Dividend pay-out means the percentage of net income paid to the shareholders. Dividend pay-out is arrived by dividing total dividend paid with the net income of the come.

High dividend paying companies are typically mature businesses. They plough back less profits for growth. They often trade at discounted valuations vis-a-vis the valuations of the broader markets and are fast-growing companies within their sector.

The art of dividend investing is not easy, but good things never come easy.


Why GSPL Share Price is Falling

Apr 22, 2024

Shares of the company crashed 20% following a big tariff reduction by the regulator. What next?

Top 5 Tata Group Stocks that Pay Good Dividends

Apr 14, 2024

Looking for blend of growth and passive income? Here are the top Tata Group companies with a strong track record of dividend payments.

This Tata Group Stock is Ramping up for a BIG Dividend Bonanza

Apr 12, 2024

This company never disappoints its shareholders and has an unmatchable dividend payout ratio in the industry.

Dividends, Dividends, and More Dividends! 3 High-Yield Stocks for You Today

Apr 3, 2024

Why you should change your perspective about dividend investing and 3 high dividend yield stocks in the current market.

Top 5 Stocks Paying Dividends in March 2024

Mar 12, 2024

Worried about market volatility? Beat the blues with these stocks declaring dividends soon.

If You Like Dividends You Should Love These 3 Stocks

Feb 24, 2024

If you like receiving income from dividends, here are three stocks to consider.

It's Raining Dividends! 5 Stocks Paying up to 5,000% Dividend in February 2024

Feb 12, 2024

Looking for high dividend-paying stocks? These five companies are nearing their record date soon. Take a look...

4 Stocks Declaring up to 1,400% Dividend in February 2024

Feb 3, 2024

Hefty dividend payments are around the corner. Watch out for these four stocks in February 2024.

Best High Dividend Stock 2024: Vedanta vs Coal India

Jan 29, 2024

While both companies pay high dividends, we believe this one has a better chance of continuing the momentum going forward.

This Artificial Intelligence Stock Has Rallied 45% in 2024 Already

Jan 18, 2024

The greatest dividend company signed a landmark cloud deal during the quarter, resulting in highest ever operating margins of 46%!

Top 10 Largecap Dividend-Paying Stocks to Keep an Eye on as Dividend Season Approaches

Apr 16, 2024

These ten cash rich companies have the potential to reward their shareholders with dividends in 2024.

5 Stocks to Watch Out for Upcoming Dividends in May 2024

Apr 13, 2024

Looking for steady income streams? These 5 dividend champions are primed to pay out in May 2024.

Top 5 Stocks Paying Dividends in April 2024

Apr 7, 2024

Looking for dividends this April? Here are five dividend stocks to watch out for.

5 Stocks to Watch Out for Upcoming Dividends in April 2024

Mar 28, 2024

Want to boost your passive income in April? Here are five dividend stocks to watch out.

5 Stocks to Watch Out for Upcoming Dividends in March 2024

Feb 28, 2024

Want to boost your income in March? Here are five dividend stocks to watch out.

Top 5 PSU Stocks with Dividend Yield Above 5%

Feb 19, 2024

The true investor will do better if he forgets about the stock market and pays attention to his dividend returns and to the operation results of his companies.

4 Stocks Paying Special Dividend in February 2024

Feb 7, 2024

These 4 companies are paying an additional dividend apart from the regular one. Watch out for them...

Top 5 Dividend Stocks Set for a Big Rebound in 2024

Jan 31, 2024

These five beaten down dividend-paying companies could rebound sooner than you think. Do you own?

5 Stocks to Watch Out for Upcoming Dividends in February 2024

Jan 23, 2024

Seeking passive income in February? Here are five dividend stocks to watch out.

3 Stocks to Watch Out for Upcoming Dividends in January 2024

Dec 27, 2023

As the calendar inches towards 2024, consider these three companies for potential dividend investments in the upcoming new year.