When people invest in stock markets, they intend to make capital gains. But, we often miss out that there is also an option to earn passive income through dividends.
Investing in dividend-paying stocks gives dual benefits to investors i.e., probable capital gains and regular income via dividends. Hence, companies with high dividend payout ratios are attractive for investment.
However, it is not easy to spot good dividend-paying stocks. One has to undertake a careful study of the market and its participants to spot a dividend paymaster.
While paying dividends generates regular income for investors, paying high dividends means cutting down on the profit that could be invested back in the business. This might slow down the growth of the company.
This might harm the capital appreciation of a stock. Hence, investor expectations may not be fulfilled.
That is why you shouldn't just look at dividend ratios alone to pick stocks.
Here are some screens for dividends on Equitymaster's stock screener:
Oct 29, 2024
On the hunt for dividend stocks? Don't miss these five in November 2024.
Oct 3, 2024
The stock is up 25% in less than a month. More gains ahead?
Aug 16, 2024
Looking for cash in in these volatile times? These five companies are offering stable and hefty returns.
Jun 19, 2024
Though bonus shares do not affect the underlying business, there is price movement around the announcement and execution of the same.
May 29, 2024
Sonata Software tanks 21% in a month. More pain down the road?
May 24, 2024
Coal India's high dividend yield has dipped, but...
May 22, 2024
On the hunt for high dividend stocks? Don't miss these five in June 2024.
May 2, 2024
The Navratna company has not added any new NPA in the last eight quarters, and it's aiming to be NPA free by the end of FY25.
Apr 12, 2024
This company never disappoints its shareholders and has an unmatchable dividend payout ratio in the industry.
Apr 3, 2024
Why you should change your perspective about dividend investing and 3 high dividend yield stocks in the current market.
Oct 18, 2024
With a new year just around the corner, check out these five high dividend-paying stocks known for their solid payouts.
Sep 11, 2024
Investors seeking regular income while participating in the semiconductor industry's growth can consider these companies.
Jul 16, 2024
Hefty dividend payments are around the corner. Watch out for these five stocks in August 2024.
Jun 18, 2024
Looking for high dividend-paying stocks? Here are five stocks paying big dividends in July 2024.
May 27, 2024
Share price of the defence shipbuilder has rallied over 75% in the past 10 trading sessions!
May 22, 2024
During the quarter under review, this energy player's operating profit margin improved 1,030 basis points to 45.9%.
May 12, 2024
Dividend stocks are making sense now. Here are 5 which have also performed well on the bourses in 2024 so far.
Apr 13, 2024
Looking for steady income streams? These 5 dividend champions are primed to pay out in May 2024.
Apr 7, 2024
Looking for dividends this April? Here are five dividend stocks to watch out for.
Mar 28, 2024
Want to boost your passive income in April? Here are five dividend stocks to watch out.