If you like dividends you should love these 3 stocks
long-term perspective, presents considerable challenges for many retail investors. The landscape of investment is ever-evolving, posing unique hurdles along the way. Despite these obstacles, Indian retail investors have navigated the terrain with confidence since the market downturn in 2020.
The market's journey to new all-time highs has been a significant morale booster. Moreover, even during market corrections, there has been no retreat. Investment continues to flow, whether directly or through mutual funds, underscoring a resilient commitment to the market.
A key factor in this enduring stability is often overlooked: the role of dividends. Dividend-paying stocks have lent a remarkable steadiness to portfolios amidst the market's ups and downs in 2022 and 2023. This stability has not only attracted more investment into the market but has also highlighted the critical role of dividends in navigating volatility.
In times of high inflation, dividends have been a reliable source of steady income and moderate investment returns. They also incentivize companies to boost their earnings to maintain or increase their dividend payouts, attracting more investors and potentially driving up share prices. Historically, dividend-paying stocks have outperformed their non-dividend counterparts over the long haul, a sentiment echoed by Benjamin Graham, the father of value investing.
Graham emphasized the importance of focusing on dividend returns and company performance over market fluctuations. If you like receiving dividends, these are the top 3 stocks that you should have on your watchlist. ITC is a diversified conglomerate with businesses spanning fast moving consumer goods, hotels, paperboards and packaging, agri-business, and IT.
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