Strategy for Investing in High Dividend Yield Stocks


Stock market is very volatile and not everybody is skilled to handle the risk caused by this volatile nature of the stock market. High dividend yield stocks offer a safe ground to those investors who consider safety a greater priority compared to high returns. Read more about the strategy.

Stock market is very volatile and not everybody is skilled to handle the risk caused by this volatile nature of the stock market. High dividend yield stocks offer a safe ground to those investors who consider safety a greater priority compared to high returns.

The dividends are paid no matter what direction the stocks move, also it should be noted that dividends can provide a higher yield on investment in a weak market. Hence, even if the market remains volatile, an investor can still be patiently invested to get a decent return on investment, thanks to good dividend yielding stocks.

Strategy for investing for high Dividend yield shares


The strategy of choosing the shares aiming good dividend yield is beneficial for those who prefer being invested rather than margin trading or day-trading. In this strategy the daily charts of the stock trade is not important. Before investing in particular stock for dividend yields, one should consider 4 major things :
1. Amount of past dividend payouts declared by company.

2. 52-week high and 52-week low price band of the share

3. Future Projects of the company (in the span of 1-2 years).

4. Your own financial ability to be invested

Amount of past dividend payouts declared by companies


The past dividend record plays a major role in picking the stocks as you can try to guess the future dividend. Here is a list to help you with some front line stocks dividend record.
High_dividend_yield_stock_profit

52-week high and 52-week low price band of the share
After studying this price band the investor can decide the stop loss trigger. The stop loss should be followed in case the stock price dips beyond the expected dividend rate.

Future Projects of the company:
Knowledge of the future projects of the company in the span of 1-2 years will help in guessing the profitability. The dividend highly depend upon the profits declared by the company, hence the projects near to completion/billing will give you good returns in dividend.

Financial ability to be invested:
It is also very important to guess your ability to be invested in the stock till the dividends are announced and paid out.


Happy investing !


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