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Thursday 8 May 2014

Indian Dividend Stocks : Identify and Choose Reliable Dividend Stocks to Grow Better

There are many articles over internet which i came through and which criticize the dividend trading methodology adopted by investors. Many investing experts believe that dividends are neither good for economy nor for any individual even. In my previous blog posts I had mentioned an article stating that “dividends are evil” even stated like they are triumph of short term thinking while I completely disagree with this post as I personally believe it's not bad to think about yourself always and if you are in stock market to invest your money, you are here to make money! Not to think about the economy, GDP, PPP etc. Obviously You can choose any dividend stock paying company randomly as to make profit through dividends in Indian stock market you need to decide who is offering you best on various levels.

A successful company which earns real profit each year has 3 options to do with their profit. First they can reinvest this money back to their business and could increase their product range, customers, client base, services etc. Second, they can buy their shares which are free and not owned by anyone else so that company can improve it's market presence. In Last company can decide to pay dividends to it's shareholders to give them rewards.

Not all companies are able to pay you dividends because they do not make real profit from their businesses while some companies re-invest their money back into their business to grow faster and beat competitors and that's a fair choice according to me as re-investing money in business or distributing it to shareholders depends on you like what are your visions, future plans and how you are seeing yourself in the current market scenario. If you are not satisfied with your company's current position in market or you are too ambitious you will go to re-invest definitely. As a investor you have to understand that thing which work for a particular organization is not going to necessarily work for others too.There are many articles over internet which i came through and which criticize the dividend trading methodology adopted by investors. 

Many investing experts believe that dividends are neither good for economy nor for any individual even. In my previous blog posts I had mentioned an article stating that “dividends are evil” even stated like they are triumph of short term thinking while I completely disagree with this post as I personally believe it's not bad to think about yourself always and if you are in stock market to invest your money, you are here to make money! Not to think about the economy, GDP, PPP etc. Obviously You can choose any dividend stock paying company randomly as to make profit through dividends in Indian stock market you need to decide who is offering you best on various levels.

A successful company which earns real profit each year has 3 options to do with their profit. First they can reinvest this money back to their business and could increase their product range, customers, client base, services etc. Second, they can buy their shares which are free and not owned by anyone else so that company can improve it's market presence. In Last company can decide to pay dividends to it's shareholders to give them rewards.

Not all companies are able to pay you dividends because they do not make real profit from their businesses while some companies re-invest their money back into their business to grow faster and beat competitors and that's a fair choice according to me as re-investing money in business or distributing it to shareholders depends on you like what are your visions, future plans and how you are seeing yourself in the current market scenario. If you are not satisfied with your company's current position in market or you are too ambitious you will go to re-invest definitely. As a investor you have to understand that thing which work for a particular organization is not going to necessarily work for others too.

Universal Health Realty (NYE:UHT)

Dividend Yield: 5.8%
Annual Dividend Rate: $2.50
Ex-Dividend Date: 03/13/2014
Dividend Paid Since: 1987
YTD Return: 7.9%

AT&T (NYE:T)

Dividend Yield: 5.1%
Annual Dividend Rate: $1.84
Ex-Dividend Date: 04/08/2014
Dividend Paid Since: 1984
YTD Return: 1.7%

Legett & Platt (NYE: LEG)


Dividend Yield: 3.6%
Annual Dividend Rate: $1.20
Ex-Dividend Date: 06/11/2014
Dividend Paid Since: 1939
YTD Return: 6.6%

McDonald's (NYE:MCD)

Dividend Yield: 3.2%
Annual Dividend Rate: $3.24
Ex-Dividend Date: 02/27/2014
Dividend Paid Since: 1976
YTD Return: 5.1%

SYSCO (NYE: SYY)


Dividend Yield: 3.2%
Annual Dividend Rate: $1.16
Ex-Dividend Date: 04/02/2014
Dividend Paid Since: 1970
YTD Return: 1.8%

PEPSICO (NYE:PEP)

Dividend Yield: 3.1%
Annual Dividend Rate: $2.26
Ex-Dividend Date: 06/04/2014
Dividend Paid Since: 1952
YTD Return: 4.7%

Find more information on Indian Dividend stocks, best dividend stocks from Indian stock market, dividend growth, dividend policies, dividend dates etc by in.dividendinvestor.com. track your dividend paying Indian stocks by our tracker tool. screen best dividend paying Indian stocks from thousands of Indian stocks by screener tool. Get email alert for new dividend announcements, dividend declarations, payout increases for your favourite stocks by email alert tool.

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