What are Dividend Stocks?

Dividend stocks are shares of companies that distribute a portion of their profits to shareholders as dividends. Usually, these are companies that have a history of distributing dividends to shareholders. Through them, investors can potentially earn in two ways:

1. Dividend income 

and 

2. Potential appreciation in the stock’s market price

However, dividend payments are not guaranteed and can be reduced, suspended, or increased depending on the company’s financial position and board decisions.

How to do Dividend investing in Indian stocks?

To perform dividend investing in Indian stocks, you may first need to identify companies with a history of declaring dividends. Such an analysis can be made by assessing the following factors:

• Dividend yield
• Dividend payout ratio
• Earnings
• Cash flows, and
• Debt levels

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*Statutory taxes and charges may apply