Over Years growth stocks to be predominant in India, why do we need Dividend stocks ? Dividend stocks are for Income investors or Passive Income seeker who would like to witness the returns on investment on Qtrly,Half or Yearly returns. REITS is one of the major component listed on the many exchanges and Singapore has modeled and is one of the major component in SGX. Advantage of having Dividend stocks is to build passive income as you retire or meet your monthly expense and continue to focus on the work you love to do with stream of income flowing into your account Yoy.
next question is Dividend Sustainable?? In case of REITs Dividends are sustainable as per norm in Singapore 90% of Income has to be distributed in form of Dividends to Unit holder, although Indian Govt has mulled REITs in India but still forming and abiding by the norms will take long time. but how do we earn passive income in absence of REITs in India, one can screen plenty of Listed companies are paying Dividend consistently and able give good returns to investors. having said how to do we screen them is through Dividend yield or Payout ratio, we need to balance both as mentioned in previous post Payout ratio indicates sustainability and Dividend yield indicates on Current CMP. lets see the list of companies which are paying dividends.
List shows Dividends Stocks with additional information while filtering good dividend stocks. below is link for your reference. do your own research or take advise from Financial adviser.
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