Best Stock to buy in 2022 Bear Market - TCS

  Best time to buy a stock ? Well what better than a recession when even the best in the business is available at a steep discount ! TCS is my 1st choice at the moment. Why ? Well, following points speak for itself (1) 2nd Largest IT company in the world with no worry of future business. (2) Largest company of Tata Group which is the largest business group of India.         App. 70 % of profit of  Tata group come from this single company. (3) Continuously growing top line and bottom line of business (4) Available at reasonable valuation with PE multiple of 29 (5) Regular buy back ensures value addition for share holders (6) Major company in both Sensex & Nifty and hence bought by both Indian as           well as Overseas investor. When FII will come back, they buy blue chip shares       like TCS first. (7) Operational for more than 5 decades now with consistent performance track         record.  (8) Need for IT solution across globe will only increase from here which will         

High Dividend Paying Stocks in India - PART 1

Who likes to have lucrative dividend income in bank account ? well all of us like the dividend income. How many companies in your portfolio give regular dividend? Very few ??? If so, don't you think it's time to correct your portfolio. Advantages of of regular dividend paying companies are as following.

(1) Good companies pay dividend in the range of of 1 % to 15% on annual basis. Now this is a huge amount. Most of the mutual funds are giving approximately 10% return on annual basis. If if your company is giving even 10% dividend, it's a huge bonus since appreciation of stock value is entirely different.

(2) regular dividend itself is a proof of good business management. Without continuous profit, continuous dividend is not possible. This itself is a proof that you are invested in the right company.

(3) most of the high paying dividend companies are owned by government & hence there is always a sense of security.

(4) sometimes market remains depressed for months or even years and hence there is negative return during this period. However, in case of high dividend paying companies you always end up making reasonably good return even during recession. 

(5) If a company is giving 15% return on share value or it is giving 10% return on share value and the same company also gives 5% dividend. In both the cases, your return remains the same.

In the next article, we will discuss which are the highest dividend paying companies in India. 

Thank you.

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