Earn 8% plus from dividend yield portfolio – India
This is a special report presented for High networth clients (HNI) who are looking at capital appreciation along with Dividend income. However, main theme is to earn dividend income but one should also look capital appreciation for longer period of time.
After 2008 global turmoil, there has been a debate on earning from dividend yield stocks and earning from rental property (Residential and as well as commercial). Both of them scored high on various parameters such as principal of an investment, cash flow benefits & risk profiling. It’s a superior vehicle for building wealth for the investor. Though the yardstick for analyzing dividend paying stocks and rental property asset may be different for our priority customer, but both of them certainly can match cash flow requirement and ability to provide the higher return in alternate asset class. One can look at another article at
We have presented a portfolio is which focus on
1) Diversification more than 10 stocks & across the sector
2) We feel “banking” should be outperform over the period of time & specially PSU ( more than 60% allocation).
3) We focus on select quality company
4) One can look at diversification based on his risk and return profile & also look at allocation
5) One can take higher yield if he pursue higher risk . if he allocatate more in higher yild company the portfolio return will be higher.
6) One should build portfolio rather an investing in few one or two stocks
|Dividend Yield Portfolio|
|Sr No||Company||Category||Sector||Market cap||FV||BV||CMP||Dividend||Yield||P/E||Allocation||Sum allocted||Dividend Received|
|1||Dena Bank||Mid Cap||Banking||3338||10||111||63||5.8||9.21%||6.91||10%||10000||921|
|2||Syndicate bank||Mid Cap||Banking||6364||10||178||102||12.2||11.96%||2.38||10%||10000||1196|
|3||Corporation Bank||Mid Cap||Banking||5041||10||600||301||23.5||7.81%||3.6||10%||10000||781|
|4||India Bank||Mid Cap||Banking||5718||10||235||123||9.6||7.80%||3.76||5%||5000||390|
|5||Union Bank||Mid Cap||Banking||9156||10||272||145||10.7||7.38%||5.5||10%||10000||738|
|6||Canara Bank||Large Cap||Banking||13210||10||512||286||19.5||6.82%||4.6||10%||10000||682|
|7||Bank of India||Large Cap||Banking||15594||10||376||243||15||6.17%||5.76||10%||10000||617|
|8||India Bulls Housing||Mid Cap||NBFC||9512||2||168||284||32||11.27%||5.7||10%||10000||1127|
|9||Oil India||Large Cap||Oil & Gas||29712||10||320||494||40||8.10%||9.1||5%||5000||405|
|11||Balmal Lawari||Small Cap||Diversified||984||10||302||345||17.6||5.10%||6.25||5%||5000||255|
|12||Graphite India||Mid Cap||Diversified||1737||2||90||88.9||3.5||3.94%||14.87||5%||5000||197|
With this lets look at advantage of dividend yield & our portfolio
As per Wikipedia – A financial ratio that shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. Dividend yield is calculated as dividend per share/ Current Market Price.
Few parameters are
|Investment vehicle||Blue Chip Stocks|
|Legal & compliance Risk||No|
|Leverage on Collateral||Yes, market accepted|
|Stability of earning||Low|
|Biggest Risk||Corporate Governance, one should diversify|
Generally, this form of investment is particular suites for High Networth Investor. In modern day, especially after the housing bubble, many investors have preferred dividend yield method.
One should take advise of his investment manager before taking any investment decision. One may contact me at Bonpriya@gmail.com for further feedback & suggestion.
Copyright 2014 einfoMet
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