| Wealth Creation Study |
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| 16th Wealth Creations Study (2006-11): Blue Chip Investing – creating wealth from dividends |
| 13-Dec-2011 |
The Biggest Wealth Creators: Reliance Industries, TCS, State Bank of India , Infosys, NMDC, HDFC Bank, ITC, HDFC, Larsen & Tubro, ONGC.
The Fastest Wealth Creators: Sanwaria Agro, Adani Enterprises, Bhushan Steel, Jindal Steel, Sterling Int., Shriram Transport, Coromandel Int., LIC Housing Finance, Exide Industries, Indusland Bank.
The Most Consistent Wealth Creators: Kotak Mahindra Bank, Sun Pharma, Asian Paints, HDFC, HDFC Bank, Reliance Industries, ACC, Infosys, ONGC, Ambuja Cement
Blue Chip Investing
Creating wealth from dividends
Highlights:
- Blue chips are fountains of dividend, and offer as much, if not more, investing growth potential than lesser quality companies, but with far less risk
- In investing, there is no profitable substitute for quality. Understanding quality of the company doesn't stop at profits and profitability, it must extend to divident payouts and longevity.
- Most Blue Chips enjoy premium valuation. In deciding when to buy, one should focus not only on P/E, but also consider payout ratio, relative divident yield, and earnings growth potential.
- In India, over the last 20 years, Blue Chips have significantly outperformed benchmark indices with much lower risk.
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