Over the next few years, the company is expected to experience very good growth rates, thanks to Jio Platforms and Reliance Retail. Other than that, the oil-to-chemicals business is expected to continue to do well.
We believe that adding Reliance Industries stocks each month can help individuals build a good, strong portfolio. Other than that, in the first six months of the covid era, when nearly all stocks had plunged, Reliance was a rising stock, thanks to more defensive play in telecoms and retail. Of course, he had also sold shares of Jio Platforms to some companies. If there is a possibility of selling a stake to Saudi Aramco in the O2C business, this stock could increase further.
We like this stock because of its dividend yield of around 5%, which means adding it to our portfolio would just yield good dividends. Again, almost all of its divisions are more defensive plays, including the greatest cigarette play and FMCG.
In fact, the FMCG sector has some very good brands like Aashirvaad, Bingo, B natural, Vivel, Fiama, etc. The stock isn’t too expensive either, at around 20 times one-year forward earnings. Individuals can add this stock monthly to your portfolio for regular dividends and as a good defensive play.
This stock has seen some decline over the past week, following a drop in technology stocks in the United States. This is another stock that has been generating returns for decades and with consistent dividend payouts and returns, the stock is a good bet.
We continue to believe that the next few years would see robust economic growth rates in the United States, which should boost business spending there. This could lead to good prospects for companies like Infosys. The stock is also available at a dividend yield of 1.58%. Thus, an investor also receives a regular dividend from this stock. Overall, we think the three stocks listed above are good at generating good dividends.
The only good thing about buying monthly is that you avoid the risk associated with a lump sum investment, which can be risky.
Be Discreet When Investing
We regularly tell our readers that the markets are overvalued and avoid investing lump sums. Invest in this market only through the systematic investment route. Even if you look at stocks, it makes sense to invest small amounts each month, rather than a large, large sum. Price/earnings multiples for Nifty companies are well above long-term averages. With inflation likely to subside, helped by higher crude prices, companies could face cost pressures.
Investing in stocks is risky and so investors need to understand the risk. The author and Greynium Information Technologies Pvt Ltd would not be responsible for any loss caused based on the article. The author and his family do not hold shares in any of the companies listed above.