Dividend Investor India: Time When You should Actually Buy High Dividend Stocks

In tough times of the stock market many analysts believe that adapting dividend investing strategy can be a good alternate. In India where stock market is concerned quite sensitive of many home and international affairs, it might be a challenge for investors to continuously seeking such stocks from the stocks market that can give them good returns irrespective of the stock market states. In Stock market, to earn profit it becomes quite crucial the timing of buying stock and a lot depends on it. Every dividend investor buying dividend stocks from market should not pay attention to regularly fluctuating prices; in fact he should focus on the underlying strength of the business you are going to invest.

Once you have a good list of growing businesses that are also able to give you great dividend returns, you should decide at what prices you are going to buy them and strictly follow that. As a dividend investor you should know that even the world’s best company is not good to buy at any price so be choosy, be patient and only buy stocks when they are being offered on attractive prices. To do this, you can screen dividend paying stocks trading near 2% up from their 52 Week Low from the India’s benchmarking stock indices NSE and BSE. You can use Dividend investor India’s 52 week High/Low scanner tool here.

Below is a snapshot taken by me using the 52 week high-low scanner tool?

Most of the dividend investor debates on topic “when one should buy dividend paying stocks. My own criteria’s of choosing dividend paying stocks to buy in Indian share market are as below.

• Choosing such dividend stocks which have been continuously raising their dividend payouts for a decade at least.
• Choose companies which are trading on price to earnings ratio (P/E) of below 20.
• Remove companies having a dividend payout ratio >60%. Ideally it leaves some room for consistent dividend growth and helps in minimizing the impact of short term fluctuations in stock market.
• Select Dividend Stocks which not only gives you a decent dividend yield of 2.5%-4.0% but also target dividend growth at least in the high single digits.
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Resource: Track High Dividend stocks from Indian Stock Market - Screen Best Dividend Paying stocks by Screener Tool

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