Here is a typical analyst musing about when to invest so that your stock is less likely to slip into a loss
01-Oct-2019 •Jugal Harpalani
The Study
There is a general perception among investors that high dividend yield stocks don't provide much growth and hence generate limited capital gains. In order to check this, we considered all the occasions over five years when investors could pick up stocks in BSE 500 that were trading at a dividend yield of more than 4 per cent. This is more than twice the dividend yield of the BSE Sensex in 2014.
Conclusion
1. If you buy a high-dividend stock, it's likely that you won't make a loss over one and three year(s). A possible reason for this could be that when stocks start showing a high dividend
yield, they have already fallen significantly and hence due to a bounce-back show positive returns in the near term.
2. While PSU stocks offer high dividends, their shares aren't wealth creators per se.
