>INVESTMENT STRATEGY: Based on Dividend Yield

High Dividend Yield would be one of the factors to select stock in the current scenario where market is at its low.

High dividend yield becomes an important criteria for investment when stock prices are at

two year low and short term scenario is uncertain. Dividend yield is simply the amount of

dividends paid by the company, divided by the share price which is the clear cash return to

the share holder.

Investors expect dividends to increase as business profits improve on the other hand, companies

reduce dividend or eliminate dividends altogether, in response to economic recession and falling

profits or during the expansion phase. High dividend yield indicates the financial strength and

business safety of the company while low dividend yield in few cases is an indication of

overvaluation. In addition to this, high dividend yield also counteract inflation risks

associated with rising price levels and lost of purchasing power (economic fluctuation). We

have used dividend-yield as a yardstick to pick few of the stock which could provide some

protection against inflation and are potentially strong enough to participate in the market rally in

the long term.

We are recommending the five stocks with high dividend yield ratio (~3.5% or more) which are

considered to be fundamentally strong with, high level of cash, low debt to equity ratios, and

strong balance sheet. Any one or in combination the following stocks could be added to your

portfolio to get better overall returns.(dividend yield + capital appreciation)

To read more about: INVESTMENT STRATEGY

RISH TRADER