When I started investing having Dividend stock made good sense as dividend tax was zero . In todays world I would not advise any one to do so …
Instead if one has to play dividend stocks theme play it through NV20 ETF which by default selects good companies with decent dividend and dividend flow sustainability ( as it considers P/E and ROCE as additional criteria ) . This index portfolio has 3% dividend and has delivered 19%+ Total return since inception & 18% since last 5 years … Pl look at fact sheet . This ETF is now offered by ICICI , Nippon , Kotak and HDFC
https://www.niftyindices.com/Factsheet/Nifty50_Value20.pdf
Accumulate when you are in 20s and 30s and in 40s sell small lots monthly … Post tax returns will be far better than any Direct Dividend stocks investment ,
Earlier I used to advice that good time to be full time investor was when your dividend income > 1.2x of annual expenses …
Now I would say when your equity net worth is 30X your annual expenditure … ( I decided to be full time investor when my equity net worth was 60X my annual expenditure … Now I think that was pretty conservative )
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