Some questions come to our mind when we hear the name of Dividends. Scroll down to see Which mutual fund is best for monthly dividend?
First we discuss about Dividends:
- What are the dividends?
- Highest Dividend-paying companies?
- How does dividend work?
- Should I invest in dividend stocks?
What are the dividends:
Companies share part of their profits to their shareholders, it is called the dividend. Giving dividend to the shareholders is not compulsory; a company is giving dividend every time; it does not mean that the company will pay a dividend next time too. To pay or not to pay the dividend is on the decision of the Board of Directors. The reason is some companies put their profits to grow the company. It will in the form of a stock bonuses or cash payments.
Highest Dividend-paying companies:
Some stocks give an excellent dividend to their shareholders like Hindustan Zinc Ltd. The market capital of this company is ₹ 69,823 Cr. Current Price:₹ 165.25, this company is virtually debt-free, and Dividend/Share ₹ 16.50. And there are perfect companies like Vedanta Ltd, BSE Ltd, Coal India Ltd, Oracle Financial Services Software Ltd, REC Ltd, Indian Oil Corporation Ltd, etc.
Should I invest in dividend stocks:
See, everyone’s way to invest is different; If you want a fixed income, then you can invest in good dividend-paying stocks or And if you are investing for the long term and good returns, then growth stocks will be better for you than dividend stocks.
The profit of growth stocks is mostly reinvested in the company for the company’s expansion, so the company is not able to pay many dividends, But the growing company can give good returns later. Now it will be your decision about which type of stocks to invest.
Which mutual fund is best for monthly dividend?
We know what dividends are, now let’s see monthly dividend mutual funds. Before Investing read all scheme related documents.
Nippon India Arbitrage Fund | Dividend Monthly:
Nippon India Arbitrage Fund good fund for dividend fund. This fund is also a very good fund, Its fund size is 7068 .17 Cr, And it’s expense ratio is 1.02%. And its current NAV is ₹12.45.
66.31% of this fund in Indian stocks, 61.37% in large-cap, 4.61% in mid-cap and 0.1% in small-cap. 4.42% is invested in debt, and 4.42% has invested in low-risk securities.
₹5000 will have to be invested for this fund and min ₹100 for sip.
SBI ARBITRAGE OPPORTUNITIES FUND
The SBI Arbitrage Opportunities Fund (Direct Plan – Dividend) is not so risky fund. Its fund size is 4746.55 Cr and its expense ratio is 0.9% which is good. The current NAV is ₹13.50.
62.75% investment in Indian stocks of which large-cap investing 60.73%, Mid-cap investment 1.86%, the small-cap having 0.05%, And Debt investment is 8.6% in which Government securities 2.15 and in investing in very low-risk securities 6.45 of this fund.
This fund declared a dividend of 0.06 per unit on 02 Feb 2020 and 27 Mar 2020. For invest in this fund Minimum of 5000 Investment and Min 500 for SIP.
ICICI PRUDENTIAL DIVIDEND YIELD EQUITY FUND:
ICICI PRUDENTIAL DIVIDEND YIELD EQUITY FUND is a moderately high-risk fund. The Current NAV of this fund is ₹12.68, And the fund size of this fund is ₹134 Cr. And the expense ratio is 1.92. The best thing about this fund is low risk in the compared benchmarks.
Investments of this fund 91.14% in Indian stocks which, large-cap 52.57%, small-cap 8.7%, And mid-cap 27.26%. This mutual fund is started on 16 May 2014. For investment in this fund, the minimum SIP amount is ₹100.
Aditya Birla Sun Life Dividend Yield Fund (Direct Plan – Growth)
This fund was started on 01 Jan 2013 and its fund size is ₹600 Cr. The current NAV of this fund is ₹136.59. Its expense ratio is 1.81%.
It is also moderately high risk fund. This funds investments is 89.14% which is large-cap 31.9%, Mid-cap 23.05%, and 32.51% in small cap stocks.
For investment in this fund, the min SIP amount is ₹1000. This fund has invested in many different sectors. And there are many good funds in which you can invest.
HDFC Balanced Advantage Fund:
HDFC Balanced Advantage Fund is a good dividend fund in India. Its fund size is 35117.86 Cr, And its Expense Ratio is 1.11%. Now its current NAV is ₹ 20.45 as on 22 May 2020.
82.71 investment of this fund is in Indian stocks, in which 68.98% is in large-capital stocks, and 7.3% is in mid capital stocks—remaining 11.03% investment in very low securities.
The portfolio of this fund includes the best stocks in India. You can invest in this fund through SIP (systematic Investment Plan), which will give you dividend income monthly. This fund declared a dividend of 0.23 per unit on 28 Apr 2020.