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हिंदी में भी पढ़ें 
The past few months have been rough for stock market investors. The Nifty 50 has been on a downward slide, erasing gains that took years to build. Panic is in the air, and investors are second-guessing their choices, wondering whether they should sell or hold on.
But while most investors are glued to market movements, worrying about the next crash, a different kind of investor sleeps peacefully at night. These investors aren't constantly checking stock prices or waiting for a market rebound. They know that even if the market stays down for months or years, their investments will continue paying them—rising yearly.
This is the power of Dividend Growth Investing.
Why does traditional dividend investing fail in India?
The idea of earning passive income from dividends is attractive. Who wouldn't want money landing in their account every few months without doing anything? Even John D Rockefeller, one of history's richest men, famously said:
"Do you know the only thing that gives me pleasure? It's to see my dividends coming in."
But here's where most investors go wrong. Traditional dividend investing—buying high-yield stocks—is a strategy that worked well in the US, but it doesn't work as well in India.
Why? Because India is a growth economy. Companies here still need to reinvest their earnings to expand, build market share, and strengthen their competitive position. The ones offering the highest dividend yields often do so because they have no future growth.
Another trap is that some companies use dividends as a smokescreen to distract investors from deeper problems. A high-yield stock struggling with falling profits and weak business fundamentals is not a source of sustainable passive income—it's a ticking time bomb.
What actually works: Dividend Growth Investing
Rather than focusing on stocks that already pay high dividends, a smarter approach is to invest in companies that increase their dividends consistently while growing their profits. This is Dividend Growth Investing.
A good dividend growth stock has three key traits:
- Consistently growing profits - Without earnings growth, dividend growth is unsustainable.
- Balanced capital allocation - A company must reinvest in its business while rewarding shareholders.
- A rising dividend payout is not just paying dividends but increasing them yearly.
The difference between high-yield and dividend-growth stocks is simple: one gives you short-term income at the cost of future growth, while the other ensures both rising income and capital appreciation.
A real-world example: Britannia
To understand the power of dividend growth investing, look at Britannia.
If you had invested Rs 10 lakh in Britannia in FY14:
- You would have received Rs 10 lakh in dividends over the next ten years. That's your entire initial investment returned—just from dividends.
- Your capital would have grown to Rs 53 lakh, multiplying more than 5x.
This is the best of both worlds—regular income plus long-term growth.
How rare are these stocks?
Not every company can sustain this model. In the last decade:
- Only 36 companies in India have grown their profits every single year.
- Only 13 companies have increased their dividends every year.
- And just two companies have done both.
These companies are rare, but they exist—and they can provide truly sustainable passive income.
Why now is the best time to invest
In a falling market, investors panic and dump stocks. But this also means strong, high-quality businesses become available at attractive prices.
If you buy dividend growth stocks when markets are down, you:
- Lock in higher future dividend yields at lower prices.
- Own compounding businesses that grow in value over time.
- Avoid market timing stress—you're investing for a rising income stream, not short-term price movements.
The smartest way to invest: Stock SIPs
Many investors make the mistake of waiting for the "perfect" time to invest. But even the best investors cannot time the market.
The solution? Stock SIPs.
- Averaging out your buying cost—You buy more shares when prices are low.
- Removing emotions from investing—No panic selling when markets dip.
- Building wealth systematically—Stay invested and let compounding work.
A disciplined approach to dividend growth investing ensures that income continues to rise over time, regardless of market conditions.
Building a reliable Dividend Growth Portfolio
Finding the right dividend growth stocks is not easy. It requires deep research into financial statements, earnings stability, dividend policies, and future growth potential.
To help investors avoid this complexity, we've already done the hard work.
Our Dividend Growth Portfolio is a carefully selected set of 10 high-quality Indian stocks that meet strict dividend growth criteria. These stocks:
- I have a proven track record of growing profits and dividends.
- Are not just dividend payers but also strong businesses.
- Offer both passive income and capital appreciation.
This is one of the best strategies available for investors looking to build a portfolio that pays them even in falling markets.
How to get access to the Dividend Growth Portfolio
This portfolio is available exclusively to members of Value Research Stock Advisor.
- A new stock recommendation every month
- 60+ live recommendations to choose from
- Three ready-to-invest portfolios: Dividend Growth, Aggressive Growth & Long-term Growth
- Smart investment tools to track and optimise your portfolio
For a limited time, we offer an exclusive 47 per cent discount—get three years for just Rs 18,990 (down from Rs 36,000).
Start building your rising income portfolio today.
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