Ah, the allure of dividends \u2013 the sweet siren song for many an investor. Wanting a monthly stream of 8-10 lakhs through dividends feels like searching for a serene oasis in the vast financial desert. But before we embark on this journey, let’s adjust our compass slightly.<\/p>\n\n\n\n
Understanding Dividends<\/strong>: Dividends are portions of a company’s earnings shared with shareholders. Often perceived as a steady income, they, however, are not always a mirror reflection of a company’s health or future prospects. Relying solely on dividends might lead you to miss the bigger picture.<\/p>\n\n\n\n The True Dividend Yield<\/strong>: In the Indian market scenario, a standard dividend yield revolves around 1% to 1.5%. So, aiming for INR 8-10 lakhs monthly, which is 96-120 lakhs annually, you’re looking at an investment ballpark of INR 64-120 crores, given the prevailing yields.<\/p>\n\n\n\n Chasing Dividends Vs. Overall Growth<\/strong>: It’s crucial to understand that a singular focus on dividends can be limiting. Like wanting only the fruits from a tree, but not the shade. Capital appreciation is the tree’s growth, benefiting you in the long run. Using the Roots & Wings<\/strong> approach, focus on ‘Roots’ for stocks with strong fundamentals. While these ensure stable dividends, the ‘Wings’ will ensure your portfolio soars with growth over time.<\/p>\n\n\n\n LSG Framework<\/strong>: The Liquidity, Safety, and Growth (LSG) model is your trusty camel in this desert journey. While hunting for dividend-yielding stocks, ensure a portion remains liquid for unforeseen needs and allocate another segment towards growth assets for capital appreciation.<\/p>\n\n\n\n Re-evaluate and Consult<\/strong>: Markets, like desert sands, shift continually. Regular portfolio check-ins are imperative. As Warren Buffett said, “Do not take yearly results too seriously. Instead, focus on four or five-year averages.” When in doubt, lean on a\u00a0SEBI Registered Investment advisor<\/strong>. And, for bespoke advice, Maxiom Wealth<\/a>‘s expert\u00a0investment advisory<\/strong>\u00a0and PMS is a compass you can trust.<\/p>\n\n\n\n To sum up<\/strong>, while dividends can quench immediate thirst, it’s the combined elixir of dividends and capital appreciation that ensures long-term financial well-being.<\/p>\n\n\n\n\n Maxiom Wealth \u2014 Free Tool<\/p>\n A 7% FD rate drops to ~4.9% after 30% tax for high earners \u2014 barely above inflation. See how FD compares to goal-based investments over your horizon.<\/p>\n FD Returns Calculator \u2192<\/a>\n Talk to a Financial Advisor<\/a>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":" Ah, the allure of dividends \u2013 the sweet siren song for many an investor. Wanting a monthly stream of 8-10 lakhs through dividends feels like searching for a serene oasis in the vast financial desert. But before we embark on this journey, let’s adjust our compass slightly. Understanding Dividends: Dividends are portions of a company’s… Read More »If I want to earn a dividend of at least 8-10 lakhs a month, what should be my investment?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,20],"tags":[],"class_list":["post-629","post","type-post","status-publish","format-standard","hentry","category-financial-planning","category-income-generation-financial-planning"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/comments?post=629"}],"version-history":[{"count":2,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/629\/revisions"}],"predecessor-version":[{"id":3899,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/posts\/629\/revisions\/3899"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/media?parent=629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/categories?post=629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/askguru\/wp-json\/wp\/v2\/tags?post=629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Are FD Returns Beating Inflation After Tax?<\/h3>\n