Hey All,
Its been a while that the post around Stock Market 101 series came out. This one was long awaited, and here I am with it. While browsing recently, I stumbled upon an interesting image that talks about the concept of a dividend wealth machine showing how an investment of ₹1 lakh (approximately $1,200 USD) can be strategically deployed over time to build a high dividend generating portfolio, eventually creating a steady and growing passive income stream. Sounds intresting right? I also have a stock portfolio that includes several dividend paying stocks with regular payouts. And to name a few, they include Infosys, Coal India, Ashok Leyland, IDFC First Bank, and many others.
Stock Market 101:: High DIVIDEND Wealth Machine...
To begin with let me showcase the example of dividend being paid out for being invested with IDFC First Bank. Here is the notification from IDFC FIRST Bank Limited - Dividend for FY 2024-25 - Intimation regarding electronic credit of Dividend. Close to Rs.500/- was paid out, yes I know the dividend amount per share is less but then it is ok when the total price of one stock is less than Rs.100/- and top of that this is all the FREE money so no harm the money being credited to your account as a dividend.
The biggest plus point is that when you hold multiple dividend paying stocks, it genuinely feels rewarding. Every now and then, you receive notifications that your bank account has been credited due to a dividend payout. That FEEL GOOD factor kicks in, and it naturally motivates you to accumulate more such dividend generating shares. Do you see my point here? In above image we have the stocks across PSUs[Public Sector Undertaking] and large cap companies paying the dividends yields that range from roughly between 2% to ~7%, balancing stability and income. Stocks Included are with & yield as follows::
Coal India – High yield (~6.99%)
ONGC – ~6.5%
REC – ~5.5%
PFC – ~4.4%
Castrol India – ~4.4%
ITC – ~3.6%
NMDC – ~4.3%
GAIL – ~6.0%
Hindustan Zinc – ~2.0%
Vedanta – ~6.5%
Just as an FYI, I am already invested into in Coal India and continue to buy the stock at every dip. With the dividend paying stocks my strategy is to keep accumulating them at every dip and enjoy the dividends when they are paid out - Yes at times flaunt as well to family members and friends. These stocks recommended by Alphamojo is an example where ₹1 lakh investment spread wisely across dividend paying stocks can generate around Rs.5K to Rs. 6K+ annual dividend income. Not a bad deal at all. And as you continue to grow your portfolio value, you will start to notice a meaningful increase in dividend income, more frequent payouts, and the compounding effect gradually working in your favor and hence turning small credits today into a reliable income stream over time. Isnt it a wealth generating machine that we can call - do you guys agree with me here? If you have any other stocks that pays good dividend the comment about it. Ok this should be it for todays post on - "Stock Market 101:: High DIVIDEND Wealth Machine - Lets Explore..." Happy Investing... Cheers
Stock Market 101:: High DIVIDEND Wealth Machine - Lets Explore......
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Have Your Say On Stock Market 101:: High DIVIDEND Wealth Machine
Do you invest in India Stock Markets? What are the different criteria you look into before picking a quality stock? Do you invest in stocks that pay out dividend regularly. Short term Vs Long Term? Please let me know your views in the comment section below...cheers
Image Credits:: Alphamojo
Best Regards
PS:- None of the above is a FINANCIAL Advice. Please DYOR; Do your own research. I've an interest in Blockchain, Stocks & Cryptos and have been investing in many emerging projects.