Passive income through dividends | How to pick the best dividend stocks

Dividends from stocks can be a good source of passive income. But for that, one should be able to pick the best and the right dividend stocks. In this video, we discuss the various aspects of stock dividends.

We start with understanding the most-tracked dividend metric: dividend yield. While dividend yield is readily available and easily understandable, it’s not free from flaws. We discuss how one should analyse dividend yield.

Then we talk about the next dividend metric: the dividend-payout ratio. This is a more stable metric than dividend yield but it also has to be understood properly. A very high payout ratio can actually be a problem. Why? You can find the answer in the video.

Finally, we discuss a robust framework that can help you pick the best dividend stocks. There is also a list of dividend stocks based on this framework but don’t use this list without doing further research.

Chapters

00:00 Introduction
01:35 Understanding the dividend yield
07:50 Understanding the dividend payout ratio
12:35 A framework to pick good dividend stocks

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[pk]

Keep up the good work. Keep educating us on financial literacy.

[raghavendrakalmadi]

Thanks for sharing the framework for shortlisting stocks with high dividend yield for passive income purposes. While calculating dividend yield, should we not consider our average price or cost of acquisition of a particular stock instead of the current market price of the stock? In the example shared, of your uncle who bought HDFC Bank stocks, his dividend yield would be higher than compared to one who has bought the stock recently?

[satyajeetrao]

ty sir for financial literacy. pl continue to make such videos.

[CrazyCollections]

Hey thanks for this video. 😊 I am holding 7 stocks among 27 dividend stocks that you recommended. But the irony is that the dividend I am earning from each stock comes around Rs. 5000. I think I need to buy on dips. 😊

[mohitbhatt]

When will the quant issue be solved, any deadline ?

[scplan]

With 31.2% tax on dividend, isn’t it futile to go for dividend stocks?

[hasratashish]

Make lakhs in dividend and pay 1/3 of it in taxes ! Hmmmm

[latestnewsinfo]

Why fresh investment closed in Quant mutual fund?? how many days will it take to solve this problem?

[yaqootyk]

Such a misleading title. Invest 1 crore and earn 1Lakh per year. Something we already know and also such a waste of money when you have options like bonds or adds which give much much more than 1% plus capital appreciation is practically zero in such stocks. Didn’t expect such a low quality video from ET money

[LearnAndPracticeTogether]

Great information.. thanks for such detailed informative knowledge on dividends

[SimpleUnboxing-]

What do you think of AI etfs? Is it a good investement?

[anujoybardhan]

In order to get as post tax dividend, one would gave have to invest a sum greater than 20L that too in a stock whose dividend yeild is 5%... How many of ET money viewers are actually able to do that? Unless you a really top level executive in one of the corporate or a big shot Businessman (Dr/Lawyer/CA).. i really dont think uts possible to get lakhs of rupees in dividend for getting passive income. Forget ET money..even if we open the search i am sure less than 0.001% people can do this....incase thats the audience for this video then okay...but i think..those guys in that top 0.001% do not watch or follow any of these videos from YouTube

[VikramSingh-pfjr]

2004 wale ankal ab tak mar gaye honge

[shinekhari]

I am creating tickets in ET money for KYC issue.. You guys dont have basic etiquette to reply to the mails.. Ridiculous