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Dividend Investing Through Smallcase

What is Dividend Investing?

Some investors, such as retired people, need a reliable source of income. With equities, you might need to sell your shares in order to realise gains if a stock increases in value. Fortunately, it is possible to generate passive income through equities investing, without even selling!

Welcome to the world of dividend investing.

The portion of a company's profit that is delivered to the shareholders is known as a dividend. When you invest in dividends, you purchase the stocks of businesses that regularly pay dividends. As a result, you have a passive income stream and portfolio's market value increase.

What Are The Benefits?

  • Value for money : These stocks are usually less risky and don’t lose much value in market downturns

  • Fight inflation : Growing dividend yields will help you fight against the rising inflation rate and void it

  • Passive Income : You get a much higher return in the form of passive income compared to Fixed Deposits or Recurring Deposits

  • Capital Appreciation : Along with the dividend the company pays out, the rising stock price is another source of profit for you

Using Smallcase

  • You can either choose to make a portfolio of 10-15 companies with consistent high dividend yields on smallcase or buy one of it’s existing offerings

  • Estimate the expected dividend based on historical dividend yields

  • Buy the portfolio on smallcase

  • Now, any dividends declared for the stocks in your smallcase will be credited directly to your bank account on the pay-out date

Picking Companies

Here are a few screeners to help you choose the right companies.

  • Strong balance sheet and with low debt, check the debt to equity ratio

  • Capable management with good corporate governance

  • Make sure the company is available at a fair price to maximise profits

  • Dividend pay-out ratio is increasing consistently over the years

Head over to our collection of Rupeeting's smallcases and choose from a wide range of strategies that make you money!

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