My Dividend Strategy - Comments Welcome

[surfingminds]

The Primary objective of our investments is to maximize the value of money i.e. beat inflation so that it can buy maximum value of material or happyness, Thats what is very important aspect of your money management : To utilize money properly to get maximum benift. As young we just need to maximize Expert advice park money in Growth option of the mutual fund and buy stock of companies who are rather focused on redeploying money for growth then rewarding with dividents.
But At the same time we should have some investments which will pay regular dividents as well. My strategy is to keep on adding companies and Mutual funds so that after 2015 i wil maximize my divident earnings . last year my Equity divident was 1% while MF was 10% so combining both I want my portfolio give me 2% divident income which i want to grow till 5% or more if possible.

I have selected 4 mutual funds and some companies need your suggestions on existing selection or any of your recommendations


Mutual fund Also I have different freq like monthly , Qtrly , half yearly and Yearly divident option

1. POMIS MOnthly div (Safe regular income 8%-Debt expossure)
2. HDFC/Reliance MIP Qtry div (Safer regular income 12%-Debt expossure)
3 icici Dynamic Half Yearly (Equity balanced 15% - unique style)
4. BSL Divident Yield Yrly div (Equity diversified 20% )


I am investing into this instruments for next 5 years so that i can generate regular income with atleast 15% interest per anum


Stocks for High Divident Yield I Hold or plan to add

1. NIIT technologies (Best one i had good div last 2 years )
2. Graphite India
3. TCS
4. ITC
5. Bluestar


I buy these stocks at low rate so that the divident yeild effective should be more that 2 % and expecting 15% from MF ..


Kindly provide your inputs on over all strategy
And suggest Best divident paying mutual fund in each category ie. MIP, Balanced and EQ diversified .

Also suggest future divident paying companies.. target 2015 ahead

thanks and regards

 

[yodlee99]

Re: My Divident Strategy - Comments Welcome

In the first reading, I didn't quite get the reason why you would need the money. But then it makes some sense in taking out a portion of the returns of your investments, just because there is no absolute guarantee of anybody / any company in the future.
For people in their 20-30's, we tell them to always invest before spending. We also tell them to invest in growth mode and let the money multiple, unless you need returns regularly.
Your mix of dividend mutual funds and stocks are interesting as well. I wasn't aware of the icici fund with a unique investment style... thanks for pointing that out. Good luck.

 

[surfingminds]

Re: My Divident Strategy - Comments Welcome

In the first reading, I didn't quite get the reason why you would need the money. But then it makes some sense in taking out a portion of the returns of your investments, just because there is no absolute guarantee of anybody / any company in the future.
For people in their 20-30's, we tell them to always invest before spending. We also tell them to invest in growth mode and let the money multiple, unless you need returns regularly.
Your mix of dividend mutual funds and stocks are interesting as well. I wasn't aware of the icici fund with a unique investment style... thanks for pointing that out. Good luck.

Thanks for you comments

Yes Its prudent to take out returns from your investment on regular basis, I am 30 and last 5 years i have put most of money in growth option but afer 35 we should plan to utilize this grown money by such strategy u can see i am slowing moving into divident not in one go. This will balance your portfolio giving more safety and regular returns which needs to be consumed as ultimately our savings serve 2 purpose either consume in your life time or give your next generation and they will consume so why not consume 50% and give them 50% ..

And Yes i read icici dymamics that the fund manager has previledge to take out money from equity when market is high m not sure if he has authority to deploy into debt other wise the fund should be in balanced cattegory since the fund is on cash when markets high i found its declaring divdent twice in year.

 

[sahilmashur]

Re: My Divident Strategy - Comments Welcome

Hi sir. Can U I am a new investor in the stock market.I am 22 years old.Can u tell me how to assess the business model of a company for a sound investment.Also can I invest in shares alone without registering with any stock broker.

 

[surfingminds]

Nice to know that you started into investing at young age,
I am also learning the value a company and understand its bussiness model, And its not so simple to tell here you need to read and understand the business of the company past perforamance and duture expectations various fundamelal rations like ROE , P/E etc.

But to make it simple take any sample company and read about it through websites, what product services it offers supply demand of that product future demand , company ability to scale for growing demand, management quality, operating margins a lot of words i can express here but i first advise to read urself and come up with specific queries which you can post here and any of th eexpert can answer

To invest in shares u can start with mutual fund indirectly doesn't requir any account, HOwever to buy shares U need to have demat account which ccan be opened by bank or broker listed by NSE BSE.