Many Indian companies have the record of paying good dividends for past many years. I remember reading something in the line of Indians like dividends, that may have been the case in the past, when they did not much about price appreciation, or it was a time when they expected a return on term insurance etc. Some people even asked the Dmart management for dividend. So, I am guessing at least for the foreseeable future, dividends at least from PSUs will continue, at least till government continues to hold majority stake. Many non-PSU companies exist as well like Hero.
If we are at least reasonably sure that sales and profits will remain to be the same, if not increase, and can follow the price, and demand, and if they are available relatively cheaper than they were in the past, despite them being in sunset sectors, I guess one can buy them, provided one does not bring the concept of opportunity cost into the context of dividend investing. And if it indeed happens again, like many senior investors say now, that after 10 years or so, such a dividend yielding PF becomes substantial, and as such, provides with some secondary income, that would be great, wishful thinking, but possible I guess.
I have allocated some to this concept, work in progress, still learning.
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