By | April 4, 2009 11:13 am

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 returns. Therefore, you have
less tension.

How to calculate DIVIDEND YIELD?

Dividend Yield:Take Dividend per share for full year and divide that amount with the price at which you acquired the share multiplied by 100.
Eg. Andahra Bank has given Dividend of Rs 4 per share for full year and its closing price on Thursay was around 41

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.


Category: Daily

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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