Bet On High-Dividend Stocks Could Pay

An investment strategy based purely on dividend yield might not seem attractive. But if companies also offer healthy growth, it could prove rewarding for investors. And, if one is able to enter the markets at an opportune time, returns would see a boost. On timing, dividend yields tend to be lowusiness Standarder when stock prices are high and vice versa. The stock market, which scaled to an all-time high in early March, has corrected about eight per cent since then. But, many stocks are down by a bigger margin, so that provides comfort.

Among the best times to consider the dividend yield investment strategy, says Ajay Bodke, head-investment strategy & advisory, Prabhudas Lilladher Private Limited, is when the market is non-trending or range-bound. Mayuresh Joshi, vice-president, Angel Broking, says dividend yield stocks with earnings stability and growth should be a core part of one's portfolio in any market condition. Ravi Shenoy, vice-president of mid-caps at Motilal Oswal Securities, says, "Currently, investors are looking for growth-oriented stocks in the bull market, along with dividend yield, a right strategy in a bull market. So, if growth is there, the yields will keep coming."

Source: Business Standard

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