Dividend growth investing

[Mr.G]

k preety good % in div ..forget the prices of stocks i just want to know for my 8 lacs investent in the 8 stocks say last year april 1 how much dividend in % or rupess i would have got this year april 1 ?

Arre yaar how can I forget price? or are you just interested in dividend income of the past 5 years? I CAN NOT ignore price. As the price which you buy the stock will lock in the yield. IF you bought stock at high price yield will be low and growth will be less, if you bought at low price then yield will be high and growth will be high.

No fundamental analyst in his right mind will ever suggest a stock without a buy price.

 

[ryan4ucar]

Arre yaar how can I forget price? or are you just interested in dividend income of the past 5 years?

ya man just want dividend income

 

[ryan4ucar]

Arre yaar how can I forget price? or are you just interested in dividend income of the past 5 years? I CAN NOT ignore price. As the price which you buy the stock will lock in the yield. IF you bought stock at high price yield will be low and growth will be less, if you bought at low price then yield will be high and growth will be high.

No fundamental analyst in his right mind will ever suggest a stock without a buy price.

yes i know about you problem with yied but i just want to know if divident payout is high enough and how much % , i understand it looks bad when one buys at high prices but still, maybe ill try and build a model for your kind of investing

 

[Mr.G]

At current prices you will get 4.5% yield per year compounded for 5 years. That means a dividend income of 34K per year on a portfolio of 8 lacs.

ITC HUL and SBI will give huge amounts of capital gains

CLINDIA BALMLAWRIE will give high amount of dividend income

GAIL ONGC TIC will give medium amount of dividend and capital gains.

 

[ananths]

Hi Mr.G,
You started a good thread...this will help long term investors. keep updating this with good stock and value buys.

What I think is whenever we invest for long term, ensure that you invest only when market is down and stock is available at cheap price...usually people buy when the market is going up. This time when market went up to 6200 many retail investors would have invested because they see only the buzz that market is going up.they think it will go another 1000 points... it may go but long term investor should see the stock as an asset rather than making money out of it in short term. I feel dividend is just like an interest for the investment you did...but main thing is capital appreciation of the asset which is what everybody wants. Yes. taking a consistent dividend providing company is the best idea for long term because without strong business they cant give you dividend. :thumb:

 

[Mr.G]

Hi Mr.G,
You started a good thread...this will help long term investors. keep updating this with good stock and value buys.

What I think is whenever we invest for long term, ensure that you invest only when market is down and stock is available at cheap price...usually people buy when the market is going up. This time when market went up to 6200 many retail investors would have invested because they see only the buzz that market is going up.they think it will go another 1000 points... it may go but long term investor should see the stock as an asset rather than making money out of it in short term. I feel dividend is just like an interest for the investment you did...but main thing is capital appreciation of the asset which is what everybody wants. Yes. taking a consistent dividend providing company is the best idea for long term because without strong business they cant give you dividend. :thumb:

My philosophy when I buy every share is that I am buying myself a business. People do more research when buying a car than when buying a share.

I look at all my holdings as little money printing machines. They print money for me (Dividend), with that money I buy more machines. And over time my machines gain value aswell. ( Capital Gain) I dont look for capital appreciation as my main focus and I dont want that. I want my dividend to increase on a consistent basis. Eg. in Y1 cos gave me Rs.1 dividend, Next year I expect it to give me Rs.1.2 dividend. Find firms that do this and capital appreciation is bound to follow.

Firstly I would like to say that fundamental analysis is not as easy and simple as people think. It is a long slow grueling procedure of crunching numbers and qualitative facts. People invest on stupid logic and then say FA doesnt even work. People check balance sheet and see it is making profit, Chalo lets invest our whole life savings. When they lose they say FA doesnt work and we lost our money. Unlike TA, FA is only as good as the person doing it. It is like saying that "one day you go into gym and work out, next day you say MAIN DAARA SINGH BAN GAYA"

If someone has even little knowledge of FA and seen or even picked up never mind read an FA book they are 800 pages thick and that is just one book on one sub-part of FA. I have a shelf of thick thick books dedicated to FA and I have read them at least 3-4 times, before I even began to invest.

With my thread i will expel the notion that FA does not work and that FA is easy and every tom,dick and harry can do it. It takes years of study and practice and a stellar IQ to do anything with it.

"Good company give dividend, Great company increase dividend." -Ghanisht Nagpal

 

[ananths]

@Mr.G,

I believe you have good understanding of fundamentals of stocks...great!
Would you mind publishing your research report on any company and why one should buy that stock? It would be good if you pick any mid cap because blue chips are known co's for most of us here.

For your kind info...for long term I want to build a stock portfolio. I'm not into too much of FA and mainly depend on MF's. So your report will help me to understand what is FA is all about. :thumb:

 

[Mr.G]

@Mr.G,

I believe you have good understanding of fundamentals of stocks...great!
Would you mind publishing your research report on any company and why one should buy that stock? It would be good if you pick any mid cap because blue chips are known co's for most of us here.

For your kind info...for long term I want to build a stock portfolio. I'm not into too much of FA and mainly depend on MF's. So your report will help me to understand what is FA is all about. :thumb:

I made it a habit to write a thesis on every investment I make but its in my register. ( I still use pen & paper as it give more flexibility)

You may not want to invest in midcaps except a few as they crash hard in bad times. And my report wont help you out any way still, My register is full of scribbles and gibberish from all the places I get info, all the ideas I get about the firm.

Buy the book securities analysis, It is the basic information set for the novice investment professional. The whole book (paperback+pdf) is almost 1000 pages. It is the best starting point I can suggest. Then you should buy buffet books. And finally dividend investing book. As I mix all three styles. Google my name for my website there is a long explanation in the FAQ and home pages.

 

[ananths]

I just wanted to see what and all things you consider for investment other than just companies paying dividend. You are a fund manager so I thought you will be sending reports to your clients. That report will show how much knowledge you have and it will become a decision maker for your clients.

I'm not a novice investor....I'm here for more than 10 years :thumb: and i dont think people need any advice from fund managers to get into large cap stocks. Just need to know when the market is giving it to you for a better price..there is no right price in the market. it all depends on investors risk taking ability. :thumb:

I made it a habit to write a thesis on every investment I make but its in my register. ( I still use pen & paper as it give more flexibility)

You may not want to invest in midcaps except a few as they crash hard in bad times. And my report wont help you out any way still, My register is full of scribbles and gibberish from all the places I get info, all the ideas I get about the firm.

Buy the book securities analysis, It is the basic information set for the novice investment professional. The whole book (paperback+pdf) is almost 1000 pages. It is the best starting point I can suggest. Then you should buy buffet books. And finally dividend investing book. As I mix all three styles. Google my name for my website there is a long explanation in the FAQ and home pages.

 

[Mr.G]

I just wanted to see what and all things you consider for investment other than just companies paying dividend. You are a fund manager so I thought you will be sending reports to your clients. That report will show how much knowledge you have and it will become a decision maker for your clients.

I'm not a novice investor....I'm here for more than 10 years :thumb: and i dont think people need any advice from fund managers to get into large cap stocks. Just need to know when the market is giving it to you for a better price..there is no right price in the market. it all depends on investors risk taking ability. :thumb:

All my clients are family friends so I don't have any need to send them the reports. I just tell them about the stock and point facts out of my register.

Select 8 random blue chips and compare their performance against my portfolio. Then you will find out if it is necessary or not. People don't know the abcs of valuation.

Whats your current portfolio?