Passive income through dividends | How to pick the best dividend stocks

Рет қаралды 34,371

Күн бұрын

Dividends from stocks can be a good source of passive income. But for that, one should be able to pick the best and the right dividend stocks. In this video, we discuss the various aspects of stock dividends.
We start with understanding the most-tracked dividend metric: dividend yield. While dividend yield is readily available and easily understandable, it’s not free from flaws. We discuss how one should analyse dividend yield.
Then we talk about the next dividend metric: the dividend-payout ratio. This is a more stable metric than dividend yield but it also has to be understood properly. A very high payout ratio can actually be a problem. Why? You can find the answer in the video.
Finally, we discuss a robust framework that can help you pick the best dividend stocks. There is also a list of dividend stocks based on this framework but don’t use this list without doing further research.
List of dividend stocks: docs.google.com/spreadsheets/...
Chapters
00:00 Introduction
01:35 Understanding the dividend yield
07:50 Understanding the dividend payout ratio
12:35 A framework to pick good dividend stocks
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Пікірлер: 49

@hasratashish 15 күн бұрын

Make lakhs in dividend and pay 1/3 of it in taxes ! Hmmmm

@pk07385 11 күн бұрын

Keep up the good work. Keep educating us on financial literacy.

@finance2572 26 күн бұрын

Very good insights.

@ETMONEY 26 күн бұрын

Hi, glad to know that you found this video helpful. Please don’t forget to share it with your friends and family.

@raghavendrakalmadi6414 25 күн бұрын

Thanks for sharing the framework for shortlisting stocks with high dividend yield for passive income purposes. While calculating dividend yield, should we not consider our average price or cost of acquisition of a particular stock instead of the current market price of the stock? In the example shared, of your uncle who bought HDFC Bank stocks, his dividend yield would be higher than compared to one who has bought the stock recently?

@ETMONEY 24 күн бұрын

Hello, thanks for your sharp observation. Once you have purchased a stock, you can very well evaluate dividends in terms of your buying price. As dividends grow, the 'applicable' yield for you will keep growing and that's the magic of dividend investing.

@raghavendrakalmadi6414 24 күн бұрын

Ideally, it will make sense to reinvest the dividends as and when we get it so as to increase the number of shares of a particular company. We can consider dividends as a form of passive income upon retirement, till then better to reinvest the dividends.

@satyajeetrao6243 25 күн бұрын

ty sir for financial literacy. pl continue to make such videos.

@ETMONEY 24 күн бұрын

Hi, nothing pleases us more than knowing that our content proved useful to our viewers. Do take out time to share it with your near and dear ones as well. Stay tuned for more such insightful videos.

@satyajeetrao6243 21 күн бұрын

@etmoney I'm taking notes of your videos. Very useful to the core. Almost understood MFs schemes and which fund to invest. Can you please elaborate on Stock markets ? Option trading, when to enter when to exit with basics?

@TheSatzy6699 21 күн бұрын

Great content and explanation ❤

@ETMONEY 18 күн бұрын

Glad to know you liked the video. Please don't forget to share it with your connections.

@CrazyCollections 24 күн бұрын

Hey thanks for this video. 😊 I am holding 7 stocks among 27 dividend stocks that you recommended. But the irony is that the dividend I am earning from each stock comes around Rs. 5000. I think I need to buy on dips. 😊

@ETMONEY 23 күн бұрын

Hello, thanks for sharing your experience with dividend stocks. Do share this video with your friends and family too.

@latestnewsinfo29 23 күн бұрын

Why fresh investment closed in Quant mutual fund?? how many days will it take to solve this problem?

@ETMONEY 23 күн бұрын

We regret the inconvenience. However, this is something that is out of control of ET Money. You may be aware that ET Money is a SEBI registered investment advisor (RIA) which allows us to offer advisory services like ET Money Genius. With respect to RIA platforms supporting non-advised or self-directed investments by investors, SEBI announced a new regulation called "Execution Only Platform" framework & ET Money now is obligated to treat self-directed investor initiated transactions as Execution Only. This requires us to pass on something called as EOP code in Direct Plan transactions that helps AMCs/ RTAs and of course SEBI know which transactions from ET Money are advised & which ones are directly done by investors. We sent an email on Friday (May 31) for updating our investors about these regulatory changes. ET Money has been able to ensure that all AMCs accept EOP code in the transactions; except Quant Mutual Fund. We are constantly in touch with Quant AMC to enable us to send the EOP code which means there are business & operational processes to be followed. Once the Quant's team agrees to the required changes, we are hopeful that Quant Funds will be back on ET Money without any delay., Please note, to avoid inconvenience to our investors, we have suspended only the fresh investments via Lumpsum & stopped new SIP registrations. This change doesn't affect SIP installments of your past registered SIPs or your holdings in Quant on ET Money. We will keep investors updated about the progress on this temporary suspension.

@mohitbhatt5986 26 күн бұрын

When will the quant issue be solved , any deadline ?

@ETMONEY 26 күн бұрын

Hello, we are actively working towards resolving the issue. We will inform our subscribers, viewers and customers as and when there is a new development.

@1CroreChallenge 14 күн бұрын

It’s open now

@TheDeboxGuy 27 күн бұрын

What do you think of AI etfs? Is it a good investement?

@aksharsrivastava4858 27 күн бұрын

Is there any AIETF in India? Mirae Asset AI has stopped investments

@thandermax 27 күн бұрын

Quant mutual fund is kind of AI fund, not sure if they have ETF or not

@ETMONEY 26 күн бұрын

Hello, we recently published a video on AI investments. Please watch it at kzfaq.info/get/bejne/bKuXotFm25_Hf6c.html

@ashishmaini1332 25 күн бұрын

IOC has given 3 bonus,

@daitasrinivasasarma1355 25 күн бұрын

Very nice video

@ETMONEY 24 күн бұрын

Hello, we are extremely happy to know that you found this video useful. Please share it with your friends and family as well and help spread the word.

@smartbinit2 7 күн бұрын

Good video bro 👏👍

@ETMONEY 5 күн бұрын

I'm glad you found the video helpful! Please share this video with your friends and family as well.

@scplan 27 күн бұрын

With 31.2% tax on dividend , isn’t it futile to go for dividend stocks?

@ankitkukreja592 27 күн бұрын

If you are able to get return on dividend in lakhs or crores that's nothing then. You have to look at the bigger picture, of course earning 10k as dividend won't be much

@MINATOYELLOWFLSH2005 27 күн бұрын

Not futile if you received 20% dividend on your invested amount. That is more than 13% free income on invested amount.

@rurudra 27 күн бұрын

You can invest in dividend yield mutual funds. These funds invest in good dividend stocks. And dividend they receive gets added to AUM and eventually reinvested Dividends are taxed at individual level, amc don't pay tax on that. U will pay only 10% on profit as ltcg when redeemed

@scplan 26 күн бұрын

@@MINATOYELLOWFLSH2005 how?

@ETMONEY 26 күн бұрын

Hello@@rurudra we have a video on dividend-yield mutual funds too. You can watch it at kzfaq.info/get/bejne/mNx9qMmZrd2mfI0.html

@gandhijiahimsa8099 24 күн бұрын

Put video for invits

@ETMONEY 23 күн бұрын

Hello, we have two videos around InvITs: kzfaq.info/get/bejne/h9-XqcSpyaynd30.html and kzfaq.info/get/bejne/msdzetiH2trHkXU.html

@MoneyMindedMonk 27 күн бұрын

Great information.. thanks for such detailed informative knowledge on dividends

@scplan 26 күн бұрын

Sorry

@ETMONEY 26 күн бұрын

Hello, thanks for your encouraging words. Please help spread the message by sharing this video with your friends and family.

@shinekhari 23 күн бұрын

I am creating tickets in ET money for KYC issue.. You guys dont have basic etiquette to reply to the mails.. Ridiculous

@ETMONEY 18 күн бұрын

Sorry for the inconvenience that you had to face. Let me forward your request to the customer-support team.

@shinekhari 18 күн бұрын

@@ETMONEY Thanks anyways. I moved to GROWW app. Anyways your User Interface of APP is good. Thanks to the wonderful lazy customer care team of ET Money. Loud applause and claps standing. Lazy guys

@yaqooty2k Күн бұрын

Such a misleading title. Invest 1 crore and earn 1Lakh per year. Something we already know and also such a waste of money when you have options like bonds or adds which give much much more than 1% plus capital appreciation is practically zero in such stocks. Didn’t expect such a low quality video from ET money

@anujoybardhan 20 күн бұрын

In order to get ₹100000 as post tax dividend, one would gave have to invest a sum greater than 20L that too in a stock whose dividend yeild is 5%... How many of ET money viewers are actually able to do that? Unless you a really top level executive in one of the corporate or a big shot Businessman (Dr/Lawyer/CA).. i really dont think uts possible to get lakhs of rupees in dividend for getting passive income. Forget ET money..even if we open the search i am sure less than 0.001% people can do this....incase thats the audience for this video then okay...but i think..those guys in that top 0.001% do not watch or follow any of these videos from KZfaq

@ETMONEY 18 күн бұрын

As discussed in the video, the art of dividend investing is not in picking high dividend-yield stocks. Rather, it's about picking solid companies that have decent dividend payouts. Over time, these dividend payouts become sizeable as the profits grow. So, it's important to have a long-term horizon.

@anujoybardhan 18 күн бұрын

@@ETMONEY Even with a long term horizon, if one considers investing in an index fund growing at 15% CAGR with annual div payout option with yield of 2.5%, and keep accumulating units every year, starts SIP with 10k per month and steps up yearly by 10% , still it will take 12 years to get a dividend income of 1L+ in one year, by which time the total invested capital would be 38L+, the value of 1L considering 5% constant inflation will be equal to today's 50k in 14 years and that too this is dividend income received in full year not monthly. So although passive income and 1L are catchy thumbnails , the passive income will be quite low. However the gains would be staggering amount greater than 50L. So its better to let even the dividend compound which is what growth does rather than try to get passive income by means of dividend payout..Cheers !!