InvestorQ : Is this a good time to buy stocks that have good dividend yields like Oil India, NALCO and Vedanta? Are they safe bets?
Lavanya Subramanian made post

Is this a good time to buy stocks that have good dividend yields like Oil India, NALCO and Vedanta? Are they safe bets?

Answer
user profile image
ishika Banerjee answered.
6 months ago


Actually, if you look at it one way, these dividend yield stocks can be safe plays in this market because at least the strong dividend yield will ensure that the equity stock is still relative attractive compared to bond yields. Investors look at dividend yield so as to ensure that certain amount of return on their investment remains assured, even if the stock prices remain subdued. High dividend yields also tend to provide a downside cushion for stock prices. However, dividend yield would be a good bet in the short term and it can at beast offer price support. But after the market has corrected by nearly 38% and the growth is expected to fall this year, there are two questions. Firstly, whether profits and dividends can sustain to keep this story alive? Secondly, can these companies show profit growth in the coming quarters to justify further price appreciation.


user profile image
6 months ago


Buy stocks only if you have the patience to wait for a while to see them grow. We are in a very slow economic growth situation.