Dividend Yield and Growth Basket Model

This basket targets Total Return by combining high-yield dividend stocks with companies positioned for significant capital appreciation. We bridge the gap between "income-generating" safety and "growth-oriented" wealth creation.

There are many companies with high dividend yields as they have reached a mature stage with less avenues of growth. Through this basket, we target companies that have a strong dividend policy along with focus on growth in sales and profits.

Our Selection Process:

We filter the Indian market using a rigorous fundamental and "Scuttlebutt" approach:

• Cash Flow Focus: We only select companies where dividends are paid from Free Cash Flow, not just accounting profits.
• Dividend Growth: We prioritize firms with a track record of increasing payouts, signaling management confidence and earnings growth.
• Fundamental Moats: Using on-ground research, we identify companies with high ROCE and low debt that can reinvest in their business while rewarding shareholders.

Why This Basket?

1. Passive Income: Regular dividends provide a cash cushion during market volatility.
2. Capital Growth: By focusing on "Growth" (Price Appreciation), we ensure your portfolio beats inflation over the long term.
3. Risk Mitigation: Dividend-paying companies typically exhibit lower volatility and stronger corporate governance.

Investor Profile

Ideal for investors seeking a balanced core portfolio that offers the stability of dividends without sacrificing the upside of the Indian growth story.