Tap Here
For example, you hold 100 shares in company X, which is trading at Rs. 10 this year. Gradually the company’s stock price increases to Rs. 15 in the next year. So you’ve already gained Rs. 5 per share. Additionally, the company also announces dividends of Rs. 1 per share. A company is not liable to pay dividends but when it does, it can be a sign of a stable and growing business. It usually signals to the market that the company has enough cash to not only invest in its own growth but also distribute the excess to its shareholders.
As seen above, you gained an additional Rs. 100 as returns by investing in a dividend-paying company.
The idea behind the smallcase was to give investors a convenient way to invest in companies that have not cut dividends in the past years and have a high dividend yield. Anyone who is looking for an extra cushion in the form of dividends can consider this smallcase. In a nutshell we can say that companies that provide regular dividend payouts and dividend growth tend to have a stable business model and endure economic cycles better.
High dividend yield companies with a track record of not cutting dividends
Volatility MEDIUM
Min. Investment Amount ₹44,111
Windmill Capital Private Limited SEBI Registration No: INH200007645 No 51, 3rd Floor, Le Parc Richmonde, Richmond Road, Shanthala Nagar, Bangalore – 560025 CIN: U74999KA2020PTC132398 Investments in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors For detailed disclosures, please visit: https://windmillcapital.smallcase.com/#disclosures