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Dividend Investing Strategy and Advantages

by | Last Updated On December 15, 2022

Learn How To Make Money From Dividend Investing In Stock Market.

Here we will understand Learn How To Make Money From Dividend Investing In Stock Market. There are a lot of investment options available that can help you become more profitable. All investment strategies are designed to increase your earning capacity, but they all do so in slightly different ways. One of the most important investing strategies for being secure and risk-averse in the stock market is the Dividend Investing Strategy.

Dividend Investing Strategy and Advantages

What is Dividend?

Dividend is regular earnings against equity investment in a company. The companies listed on the stock exchange pay dividends to their investors out of the net profit of the company. Dividend is an equal distribution of profits to investors in proportion to the number of shares they hold. Dividends are not paid on every stock. It is only paid when the corporation announces them publicly.

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What is Dividend Investing Strategy?

Dividend investing is an investment strategy of buying high-yield dividend-paying stocks. By investing in dividends, investors receive three main advantages which are Dividend Income, Steady Growth & Tax Advantages.

Advantages of Dividend Investing Strategy

  1. Dividend Income: Dividend investing is all about dividends. There are some high dividend yield equities that have continually increased in value over time while providing returns to their investors.
  2. Steady Growth: Dividend-paying equities do not experience market volatility or share market crash and grow slowly and steadily. To build a strong portfolio, dividend-paying stocks are reliable investments.
  3. Tax Advantages: Dividend stocks are a long-term investment, therefore investors pay less tax on them. Investors must pay a lower rate of tax on long-term investments. Dividend stocks are therefore tax-beneficial investments.

List of Top 5 Highest Dividend Paying Stocks in India (2022)

# Stock Dividend Paid (%)
1. Indian Oil Corporation 11.92%
2. Power Grid Corporation of India 11.88%
3. Indus Towers Ltd., 11.74%
4. India Tobacco Company Ltd., 10.80 %
5. Tata Steel Ltd., 5.92%

List of Top 5 High Dividend Yield Stocks of NASDAQ

# Stock Dividend
1 Walgreens Boots Alliance 5.79%
2 Intel 5.28%
3 The Kraft Heinz Company 4.72%
4 Gilead Sciences 4.46%
5 Amgen 3.32%

Dividend Investing Strategy FAQs

Dividend investing is a good investment strategy. Dividend stocks generally outperformed other stocks and are less volatile.

A Dividend Yield of 6% is considered good for a portfolio.

Buy High Dividend Paying Stocks.

Conclusion:

Dividend Investing Strategy is a tried-and-true method of earning money. In a highly diversified portfolio, these equities offer some stability and consistent income.

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Nikesh

Nikesh is a Banker and Experienced Financial and Investment Advisor with over 20 Years of Experience in the Field of Finance and Investment. He possesses vast experience in the field of Stock Market, Mutual Funds and Investment Portfolio Management. Keep visiting for daily dose of Share Trading Tips and Tutorials.

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