When the markets are down and stocks are cheap like cheap servers, it is an opportunity to look for high dividend yield stocks. . As long as you hold the stock concerned and as long as the company continues to pa y dividends at the same rate,your dividend yield is fixed for life, even if the market price of the
stock changes.
Other things being equal , the yield will be higher if you buy stocks at lower price.
When you are not sure how long the bear market will last , a good dividend yield will give you a
steady income and therefore you can afford to forget what the index or stock is quoting at . You
treat the stock more like a fixed deposit where you get your fixed ret
less tension.
How to calculate DIVIDEND YIELD?
So Dividend Yield will be 4/41*100=9.75% which is more than a Fised Income return you get.
And one more thing ito be noted is Dividen Income is Tax Free, So in return you are earning almost 10% Tax free income.
Other Stocks Being Tata Elxsi which gives a dividend yield of 6.5%.
So with the Plethora of Stock Avilable start searching for Good Dividen Yield Stock in this Bear Market and make uourself a permanet source of tax free Income Voila!!!
Criticism and Comments Invited.
Regards,
Bramesh