Hi Amit, Einstein,
Very good thread.:thumb:
Can you please list out top 3 stocks to buy in different sectors to create a portfolio for very long term? The person who is investing wants to invest systematically over a period of time. Main intention is to get dividend returns and capital appreciation over a period of time.
You must have done such analysis in this thread before..i went thru few pages. It would be very helpful if you can summarise your list of stocks.
Thanks in advance.
Very good thread.:thumb:
Can you please list out top 3 stocks to buy in different sectors to create a portfolio for very long term? The person who is investing wants to invest systematically over a period of time. Main intention is to get dividend returns and capital appreciation over a period of time.
You must have done such analysis in this thread before..i went thru few pages. It would be very helpful if you can summarise your list of stocks.
Thanks in advance.
Firstly, let me clear what it really means get dividend returns. Hv mentioned it before.
A Co is able to pay dividends from two sources
1. Free Cash Flow (FCF), which is what remains at year end after paying off every expense and fresh investments
2. Debt.
For a Co, an alternative use for both these sources is expansion of capacity to generate more revenues. Therefore, it is true that the Cos that give-out nice dividends do not have growth plans. Hence, one cannot expect its EPS to grow. Which is a big minus. However, issue of nominal dividend is harmless.
Therefore, do not make dividend-returns a prime criteria in selection of companies.