Super gain in Strides Acrolab

Many investors looking share market with a negative view as stock markets has a history of troubling new investors who were trapped by emotions and over trading most of the time.

For many retired and service staff prefer bank FD because they do not want to take a risk.  People in these categories attracted to bank FD because it offers a regular income.  After the retirement they do not want to lose their life time earnings

Indian markets are offering many opportunities to retired service sector staff. For those who recently entered to service we advice to take along term perspective in Indian market. 

We have a solution for head ache free investment in stocks.

When we talk about long term investment consider the following matters.

Save 10 to 15 percent of your income each year beginning in your 20s. If you're over 30 and haven't started saving yet, begin as soon as possible.

Invest in stocks that paying good dividends as well as capital gain

For last 10 years stock market growth was 17 percent where as capital gain from high dividend yielding stocks were around 40 percent. They have made a good dividend income also.

These dividend yielding stocks are taken after carefully analysis their balance sheet.

These kind of investments help you to concentrate in your job.  Your investments will be growing .

Lets study this with 2 examples.

Strides Arcolab

Strides Arcolab is in the Pharmaceuticals sector. The current market capitalisation stands at Rs 5,720.09 crore. Face value of the company is Rs. 10. Then Rs. 105 dividend means 1050%.

Now we take the annual dividend company paid since 2013.  On December 2013 company paid Rs. 500 per share dividend ie 5000 percent . Remember company face value is Rs.10 only. On May 2014 again they paid Rs. 5 as dividend that is 50% dividend on face value of Rs.10.  On 7th October 14 company declared a special dividend of 1050%. Ie Rs. 105 per share. Now lets see what would be an investor gained if he was holding Strides acrolab for 1 year.

We bought the share at Rs. 900 on Second week of December 2013.

Since then we got a total dividend of Rs. 610. That means with an investment of Rs. 900 we received total dividend in three intervals and our return or dividend yield was 67.7%. Not a bad idea. Now look The share price is 960. Ie Rs. 60 increased from our buying price . Around 7 % growth. So total return from Dividend yield and Capital gain was 74.44%. The company has a good dividend track report and has consistently declared dividends for the last 5 years.