which sector normally suitable for income investor(Dividends)?
Sectors which are cyclical or Defensive ?
Cyclical Sectors perform while Economy in upswing like automobile and infrastructure. these sectors outperform during upswing in the economy and these are suitable for swing traders or short term traders who are looking for short term capital gains will such company are tailored to Dividend investor one has to do thorough research to pick right stocks for income in these sectors.
Defensive sectors are not path breaking or hi-tech which doesn't disrupts any technology or major changes in the industry but these non-noisy and best suited for passive and dividend investors.
FMCG and Pharma falls under defensive sector but one needs to check before investing as some large companies disburses dividends but same sector oriented in Defensive and small companies might not distribute dividends.
REITS : Reits are popular in West and APAC but still at infancy in India this sector pays you dividend but its very sensitive to the Interest rate as interest increases Distribution per unit drops so there are REITS pays you handsome returns some may be in form of Business trusts or Hospitality(Health).
Overall if you are an Income Investor options are available and you can also win in the game of stocks.
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