Top Dividend Investing Strategies ft. Dividend Aristocrats & High Dividend Yielding Stocks
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- Опубліковано 13 чер 2024
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In this video, we explore the often overlooked aspect of dividends in stock investing. Yes, some investors look at it as passive income but I would like to bring your attention to dividends as a power stock selection tool. I'll take you through two very important dividend investing strategies that can not only improve your investment returns but can do it at lower volatility - a) high dividend yield and b) dividend growers (namely, dividend aristocrats)
The high dividend yield strategy focuses on selecting companies that offer significant dividends relative to their stock price. I discuss the nuances of this strategy, including its dependence on a company's profitability and free cash flows. While high dividend yield stocks can provide attractive returns, their cyclicality and market fluctuations require careful consideration.
Transitioning to the dividend growers strategy, we explain how these stocks have the potential to increase dividends over time. Known as "dividend aristocrats," these companies consistently raise dividends for at least 25 consecutive years. We discuss their characteristics and the impressive returns they have delivered, outperforming high dividend yield stocks in various market conditions.
👉 Video Chapters:
00:00 Dividend Investing
01:06 Dividends and Total Returns on Investment
03:31 High Dividend Yield Strategy
08:28 Dividend Aristocrats Strategy
14:28 Shankar's Viewpoint
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👉 Useful Reading Resources:
‣ Data Research on Dividend Growth Strategies: intelligentcapitalworks.com/w...
‣ S&P Global paper: www.spglobal.com/spdji/en/doc...
‣ Article on 20 Dividend Aristocrat Stocks: economictimes.indiatimes.com/...
‣ Article on 10 High Dividend Yield Stocks for FY2024: economictimes.indiatimes.com/...
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Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
Rest are influencers, you are an Educator Shankar, great content. Thanks a lot.
I agree
Thanks for your kind appreciation
Totally agree
Your content is soo good sir from all the rest of influencers. I have been binge watching your videos from last few days. The data, study material and excel sheets you provide are very useful. Thank you 👍🙏
Thank you so much for your kind appreciation. I'm glad my work is making a small difference in your financial journey. I wish you well. 🙌
Hi Shankar ji, I have been a dividend growth stock investor since 6 months or so. Earlier I was fully into growth stocks paying nominal to no dividend as I truly believed that profits reinvested into a company for future expansion would further compound it’s earning and thereby the shareholders. But off late, I realised that dividend growth strategy (especially in a big stable non- cyclical sectors) can not only help me in capital appreciation in a stable manner but also help me to compound my wealth faster if I start reinvesting the dividends in those companies. So, it’s like killing two birds with one stone. In others words, capital deployed = capital appreciation + regular dividends. Whereas dividends are further reinvested into buying more shares of such companies thereby making cash flow and faster wealth creation. Thanks a lot for the informative videos. 🙏🙏🙏
Your knowledge is comprehensible
These videos are high quality gems which every potential investor should always add in his knowledge basket.Well done Shankar ji..super stuff...Best wishes.
So nice of you. Thank you very much, Sreejay for your kind appreciation. I too end up learning a lot and improving my own investing portfolio via these videos
This is simply awesome Shankar. More power to you.
Glad you liked it. Thank you!
Dear Mr Shankar, your channel is an absolute gem and goldmine of knowledge for real investors who view investing as a journey and have a deep interest in self-learning, research and building their own frameworks, strategy and approach to portfolio curation. Hats off to you and look forward to more such great content. Regards !!
Thank you for your kind appreciation, Mr. Batra. I'm happy that my work is helping you build a better investing framework for yourself.
Shankar Ji Learned new aspect of Investing... many thanks...
Most welcome Sir. I was bit skeptical at first but after trying out a few tests, the data does show that a dividend growth strategy is a rather powerful and even India's consistent & top performing stocks over the last 2 decades mostly ascribe to this strategy. The returns from these stocks has been atleast 15% with an average of 18% CAGR over 20 years.
Hi Shankar Sir, Thanks for covering this topic! Amazing video.
My pleasure. Glad you liked it, Saurabh.
Thank you very very much. Very educative and actionable content. Thank you once again.
You are very welcome. Glad you liked it
Great analysis Shankar Ji 🙂
Thank you very much 🙌
Thanks for giving an entirely new angle to think& research upon. Will go through the links which you have shared. Shankar sir 😊😊
Most welcome. Yes, please try it out. I started researching this video with something else in mind but while researching, I could see how aligned dividend growers and high stock market performers are.
You deserve being awarded for dissipating such a knowledge and value among us.❤
Glad you liked this video and it's content.
Keep it up
hi Shankar, this video was informative, I now have a clear picture of divident investing and how I can take it forward
That's wonderful to know, Varun ji. The more I got into the subject, the more it became clear to me. We meekly talk about "compounding" but using dividends and share price .. it was picture perfect and the biggest wealth creators in India have followed this model to the tee.
Splendid content and delivery. Learned something new and look to apply.
Glad it was helpful! Thanks for the appreciation
Really appreciable thaughtfull consistent content 🙏
Thank you very much, Parag
Great Content & amazing analysis Buddy
Glad you liked it!
Great content...Thanks a lot
God bless you!
Most welcome
I just discover now your channel, and already subscribed. I was looking for information about investment ideas from India and i am very impressed with the value of your videos. All the best for you, from Portugal, and thanks.
Thank you very much Sergio, glad you liked it. This channel is more of a learning channel for beginner-plus investors .. will be good to receive your feedback from time to time.
@@shankarnath for sure you Will receive. I am very interested in Índia and potential investments there.
I am also very pleased about the way you make efort to interact with your followers. All the best for you
Hi Shankar- Thanks for producing such an informative video on dividend growers strategy, this is really very helpful! In future, can you please also prepare a detailed video (in your clear articulative style) on - in a (secular growth oriented) company's financial statements where a retail/DIY investor should look, what to look and how to calculate/find key metrics like operating cash flow, PAT, top line growth trend, free cash flow, market share gain/loss etc. and key ratios like ROE, ROA, ROCE, CFO/EBITDA etc. Usually screeners' data isn't latest and sometime misleading... may be it's my bad experience...
Thank you for the suggestion
THANK YOU SIR FOR THE VALUABLE VIIDEOS
You are most welcome
Thanks
Very nice information. However, I have a different view on buying a dividend stock.
Buy high dividend stock (in a crisis) if average return is 4-5% over FD rates. Like buying IOC between Rs 70-80 if not below. (Also, generally speaking, these recurring dividend can be reinvested in 1.5-4% dividend yield growth company)
If not above, then focus solely on a mix of Large, midcap and small cap (IT) dividend paying stocks OR Large Banking stocks only
Other sectors (FMCG, Speciality Chemicals etc) are equally important, and a personal choice. However, I am more comfortable with 3 sectors only (Energy or Power (Consistent dividend), IT and Banking) ☺️
Baaki videos dekh dekh ke seekh rahe hain , Thanks 🙏 to Shankar you actually bring a solid insights support with data ( I hope sources are double check 😁) Because I blindly believe in your (Shankar's) provided data points
Thanks for sharing your views. Your last line was very interestingly framed .. suspicion over the data presented and trust in the data presented bundled into a single sentence :)
Thanks for making this video❤
My pleasure 😊 Glad you liked it!
U r the best ❤ thank u
Most welcome & thanks!
Good video ,new concept learned sir
Thank you very much. My pleasure!
Thanks🎉🎉🎉🎉🎉🎉
Thanks for this
My pleasure!
Good video👍
Thank you very much
Can't thank you enough...good video
Very welcome 🙌
Superb video
Thanks
Quite an insightful video... appreciate your research! The concept of a Dividend Growth portfolio vs. a Dividend Earning portfolio, is it feasible to build a distinct Dividend Growth portfolio? I have been trying unsuccessfully... The investor would invariably end up with a mix of both strategies - Growth + Earning. There are few companies with past 5/10 years ROCE greater than 20% and also Dividend Yield > 5.7% (at least beating Rf return). It would be hard for the retail investor to ignore the earning potential of high dividend-paying companies. Many companies pay high dividends out of compulsion (either to reduce their own debt e.g. Vedanta, or as a regular source of income like PSUs).
Thank you. A dividend grower is different from dividend yield. Have you been picking dividend growers or high dividend yielding stocks? Companies like Vedanta are not dividend growers and have seen cyclicity in their div per share number. For instance - this is what they've given in the last few years
FY15: 4.10
FY16: 3.50 (drop)
FY17: 19.45 (big gain)
FY18: 21.20 (small gain)
FY19: 18.85 (small drop)
FY20: 3.90 (big drop)
FY21: 9.50 (big gain)
FY22: 45.00 (huge gain)
FY23: 101.50 (huge gain)
Vedanta taking loan to pay dividends…
Quality of the content is supernotch. Sir
Thank you very much!
Thank you for the video. Do you think divided's will be worth it considering the taxation?
Most welcome. As explained, the dividend is being used as a selection tool and not an income generation instrument. I think many viewers will make this mistake but I wasn't able to simplify it anymore. To say it differently, it is my contention that using dividend growth as a stock selection tool can have a profound impact in one's stock market returns & the list of 20 stocks where each stock has delivered over 15% is good proof of that
Thank you for the explanation Sir. I was also searching to understand about Dividend Aristrocrats. So for long term is it valuable to invest in the smallcase Dividend Aristrocrats in 2024?
Most welcome. Apologies, I have not analysed the smallcase on Dividend Aristocrats so I won't be able to give a view on this.
Thanks ❤
You're welcome 😊
Hi Shankaj ji, what is the probability of india stock markets behaving like japenese stock market in the future...there has been no return in Nikkie in last 20- 25 years..if you can please educate us on this with a video
Thank you for the suggestion. If the Indian stock market goes into an unjustified bull run and reaches a PE ratio of 60 (which is where the Nikkei was in early 1990), then I am hopeful the viewers of this channel will have made massive wealth by then and would have the cognizance to exit before the risks start outnumbering the returns.
On your questions:
1. Probability of Indian stock market behaving like Japanese stocks market in the future is definitely not zero as anything is possible. Here's an wonderful article here, please have a read: tradingqna.com/t/japanese-nikkei-at-33-year-highs-what-took-it-so-long/147269
2. The point on no-return is actually not the right way of looking at it. I even made a short on it. Have a look: ua-cam.com/users/shortsunql3gd5VkE
Hi Mr. Shankar Excellent video as always. I am looking to implement you small cap investment strategy. However I am unsure as to what mutual fund/ETF to use to implement it. Do you have any suggestions? If you don't want to name any mutual fund/etf directly then can you tell me how to look for them.
Thanks Girish ji. The Nifty Small Cap 250 Index/ETF is the ideal instrument as it is method based unlike an active small cap fund which depends on the fund manager's style of investing
But active funds are giving more ALPHA than Index funds.
Sir, before buying HCl tech I didn't know how dividends can also effect our portfolios, after I calculated their dividends for the complete year they're giving almost a 6 percent every year which means they're already beating the inflation with just dividends and growth is a bonuses to be considered, I started loving HCl tech stock after this observation ❤❤
Good to know this info helped you. Yes, dividends is real cash!
❤❤❤
get ready for 1M subs
Hi Sir
Which site you use to get data. Like list of Nifty Dividend Oppurtunities Index. Can you create a video on sites where you can get data and then how to process that data.
Hi. You can find a lot of sources on Google.com. I generally type a query like "list of companies in Nifty Dividend Opportunities Index" and the search engine always has a good answer. With re: on the commonly used site, I use:
1. Niftyindices.com
2. Advisorkhoj.com
3. Valueresearchonline.com
4. Screener.in
sir please suggest five best dividend paying stocks
Great video 🎉. I have a question every one discussing about index based mutual funds, but my understanding is except expense ration nifty 50 or large cap funds poor returns when compared to small and mid cap funds
Thanks. I'm sorry - can you please rephrase the question?
Every one is saying that, index funds give better returns with less risk.But my understanding is that except, better expense ratio, the returns are poor for NIFTY 50 Index fund when compared to mid cap and small cap funds.
May be we should not compare NIFTY 50 Index fund with midcap or small cap funds
@@pappalabalayogi9495 .. thank you!
@shabeerkt5169
1. Index funds don't give better returns, they give market returns which personally I think is good enough at 12-13%
2. Data will show that 20-25% of actively managed large/ELSS/flexi/multi/largemid cap funds do better than index funds
3. Large cap and small cap funds over long durations have offered similar returns. It's the midcap that has done better
4. As explained in many of my videos, the choice is not between large or small caps in isolation. It is a choice of being large cap or small cap heavy at different points of time.
Unrelated... but..Your thoughts on Poch joining Chelsea?
I have a good feeling about this. Mauricio did an incredible job with Spurs. I personally love the 4-2-3-1 which is what he employs (although Chels doesn't have a confirmed CF yet). Also, he likes to press which means just half of our players are adept for that kind of play and stamina. It'll take him atleast 2 transfer windows to sort this out.
Sir, after watching your this particular video I would most humbly like to ask you one question about a particular company.
Is the Indian Oil Corporation Limited a dividend value trap? It's making profit but during COVID, it posted negative number, yet it paid dividend to shareholders from its gigantic cash reserves.
I do work on this company in market and earned profit+dividend several times through delivery trading.
Also, I would like to request you to make a special vedio on the companies dealing with fossil fuels.
Thanks.
Regards.
Thank you for the suggestion. I'm sorry - I haven't analysed Indian Oil recently so won't be able to comment on it
Shankar, Another good video. But this time around couldn't stop myself from commenting.
Very informative and is presented very lucidly. I did not know that there were so many nuances to dividends.
As the tax treatment of dividends in the hands of the investors has always been as an "income" where the individual's slab rates will apply, I have always been wary. An LTCG of 10% is more palatable than a 30 or 40% slab rate. So I have always tried to stay away from these - (caveat - I always do stock picking instead of doing the MF route)
Thank you very much for your kind appreciation, Jaikrishnan.
The emphasis of this video was not to "earn" an income (that's just a bonus). Instead the video's content was on how we can use dividends to pick stocks .. and the last article with 20 stocks at a 20-year CAGR of over 15% is good proof of that.
But on your point -- my math is a little different. So we generally earn about 10% in capital gain and 2% in dividend. On the 10%, there is an LTCG of 10% -- so 9%. And on 2%, there is an LTCG of say 30% -- so 1.6%. So the net saving in returns is 0.4% by not opting for dividend stocks. However my contention is to use dividends as a selection tool and make 15%+ in capital appreciation so that we don't have to even worry about that additional 2% (or net 1.6%) dividend.
Please make a video on stock exit strategy. Every body in U tube talking about investment and checking fundamentals of a stock. But even fundamentally strong shares are falling after our purchase. So how to protect our capital?
First comment anna unga tamil super
Thank you very much!
Sir what is the meaning of profit booking?
When and how to do profit booking?
How much profit book we should do?
Pls make a video about this.
Thanks for the suggestion
@@shankarnath if one do SIP if suddenly market falls like covid, war, or big bank go bankrupt. How much we need sell and what stocks to sell.
Sir pls do sector analysis video
Thanks for the suggestion
I have a question about the NPS. Haven't been able to get an authoritative answer. It would be really helpful if you could confirm.
Is it now allowed to select multiple fund managers, i.e. different managers for different asset classes? E.g. HDFC for equity and LIC for bonds?
It was mentioned in brief in a recent issue of ET Wealth. Looks like NSDL is offering this option but K Fintech is not.
I Googled a fair bit and also asked around online. However, I couldn't find any official circular or any relevant news reports. Could you please find out if this is officially allowed now, and why only NSDL but not K Fintech?
Hello Nikhil ji, since this is a bit procedural maybe it's the NPS company that can best answer it. Have you tried putting in a lead at the NPS website?
I plan to make a video on NPS and will be talking to a couple of NPS salesmen and product managers. I will add this question to that list. I am not well versed with the new rules, apologies!
You can use different fund house for different asset class. I have done it in my account
I put money in my mother ppf account and mine so do have i split 1.5 amt and should i 7.5 in mine & 7.5 in her's please advise she is a house wife should i file for her tax return to be on safer side thanks for your time sir
Hello, please consult a tax advisor or chartered accountant for the exact interpretation of the PPF rules and the tax laws
Hello Shankar sir,
Thank you very much for great quality content.
I have a question related to nps. Tier 2 account can be used as savings account. We can withdraw the funds from Tier 2 anytime since no lockin period. But I want to know what is the Tax on nps Tier 2(LTCG and STCG) duringwithdrawal. There's no clear information about this in NPS website also.
Kindly research this with experts and share the details in your MPS video.
Thank you 🙏
Thanks for the suggestion. As my video might some time, may I request you to connect with a CA friend/alumni who deals in taxation matter. He/she will be able to clarify it.
@@shankarnath Hello sir, I tried but couldn't get the details.
@@eswarkumar4761 OK. As I am not a tax advisor myself, I have to round up experts on this which might take some time. If you find the information earlier, then please advance me a note.
what is dividend and why companies give it.. ?
Hello. Here's a post on the same: www.thebalancemoney.com/why-do-companies-pay-dividends-5185975
thanks a lot !
Sir hindi me bhi videos daaliye
Are dividends the reason why nifty etf grow at a higher rate compared to nifty? I heard that niftybees started at nifty/100 rupees, but now they are trading at 205 even though nifty has not crossed 20000.
You seem to be referring to the tracking error which brings in a 0.1-0.2% difference. This arises due to many factors like buying and selling frequency, incoming funds, redemption, provision for redemption and also dividends.
pls explain ROE & ROCE
Hi, are you looking for anything in particular? There is already a lot of literature on ROE and ROCE; a Google search will offer many resources for beginners
Thanks Shankar. I create Small cases just to want to think myself as a fund manager 🙂. My Small case "Year" is a Value & Dividend ( min. amount 7,963.79/- ), this has 4 companies that gave a return of 119.57% from Mar 21,2022.
So I want to say, dividend companies are more good when invested at low valuation.
ek channel hindi wali bhi banao... English me samjna muskil lgta he ..😅
Definitely Hindi mein bhi banenge but thoda time lagega kyunki abhi mera pass koi team nahi hai. Ek baar kuch income aane lag jaye tab ek do logon ko recruit karna hai and then expand kar sakta hoon into other languages and formats
আপনার বাংলা চ্যানেল নেই??
It's too technical, can't grasp much
Oracle financial services
Hindustan zinc