Effect Of Dividend Payout Ratio On Company Financial Statement?

A company pays out dividend from their retained earning. Retained earning comes from cash flow. There are instances when corporations took out debt to pay dividend to continue track record. In recent times, many energy companies did that, because the crude price dropped. If your company does this, sell the stocks. This is definitely a…

How To Invest In Dividend Stocks in Post Pandemic World?

After March 2020, I changed my investing approach. And to be honest, my returns ( in terms of capital appreciation) has been better. If you read other posts in my blog, you will notice I always talk abut the business being solid. And during pandemic I realized many businesses are vulnerable. They survived well because…

Why Share Price Drops After Buyback?

stock buyback

Recently, Rites brought buyback offer, and I sold some of my shares in buyback. But Rites stocks did not actually drop after buyback, the price increased, which was expected, due to anticipated increase in EPS and liquidity flow. But at time stock price drops right after buyback, especially when the buyback price offered is more…

Is India Entering The Eye of Economic Storm?

While the COVID Pandemic has broken every country’s back, India’s economy was breaking down post-2015 November demonetization. The GST rollout was another blow to small businesses. While the stock market celebrated GST because they anticipated that the unorganized sector will be sucked out dry by the organized sector, everyone forgot that the unorganized sector is…

What Do The Dividend Yield And Dividend Payout Ratios Tell An Investor?

Dividend yield and dividend payout ratio are great matrices to find out if one should invest in a stock if you are looking for dividend income. Although the dividend yield is different than the dividend payout ratio. In my opinion, the dividend payout ratio is a more important and comparatively more stable indicator. Because it…

Why Am I Bullish On ITC Ltd.?

ITC brands

The tobacco giant sells 80% of legal cigarettes in India. When compared with British Tobacco or Altria Group, they have better brands and more products of course, and they are present in more countries than ITC. Anyway, while cigarettes volumes are going down and hopefully that is a good thing for society in long term,…