This article talks about value investing and cites example from India stock market. So the PE multiple or dividend yeilds mentions in this article are stirctly applicable to Indian stock markets only. But the investment strategy can be applied to any stock market in the world.
People who have invested in high dividend-yield stocks have less to fear, particularly when the tide turns against equities. Mangal Keshav Securities’ institutional equities head Jay Prakash Sinha said “Good dividend-yield stocks are out of favour as their number is going down. Traditionally, a yield of over 7% is considered good”.
Benjamin Graham, who is generally considered as the father of value investing, included this yield as an important part of his rules. ‘The investor is best off concentrating on the real life performance of his companies and receiving dividends,’ was his view.
Link to the entire article: http://economictimes.indiatimes.com/Market_Analysis/Value_investing_good_option_in_volatile_market/articleshow/2717428.cms
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