There are a number of companies paying out dividends. But experts. But Experts advise that investors must choose quality over quantity . A sizeable dividend from a risky and depreciating underlying stocks is a Zero _ Sum game . It could be a good idea to established , blue - chip stocks.
The dividend history of established companies with proven dividend yields provides a great measuring stick . check the historic dividend performance of stocks before investing . There are numerous open - source platforms , Including the web sites of BSE And NSE that provides these details
The Payout ratio, which is a ratio of the dividends paid and the company's net income speaks volumes about the company's expansion plans. companies reinvesting their entire earnings into growth may have a zero payout ratio . For companies choosing to pay dividends out of earnings, the ratio could be higher . it could be worth seeking an expert's advice on the same before investing.
Mix your assets. The importance of diversification across sectors is extremely important . So, in case stocks from one sector underperform, the ones from a better-performing sector make up for the losses.