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This Indian tech company is paying out a 450% dividend in October.
Dividend stocks can be a great way to generate both wealth and income. This company operating in a niche segment has a rich history of paying out big dividends. If planned well, dividend stocks can be a great way to generate both wealth and income.Now before I come to this Indian tech company that is paying out a big dividend next month, I want to share this with you (only because you are interested in dividend stocks)…
Recently, we covered a detailed editorial on two high dividend paying companies – Vedanta and NALCO.
While dividend investing is an evergreen strategy in the stock markets and will continue to prevail in the years to come, it is more so relevant in the current environment where uncertainty is ruling the stock market.Investing in a stable dividend-paying company will let you sleep peacefully at night. The business will generate a steady passive income. The more stable the business, the higher the share of profits that can be distributed. Don’t just think of dividends as a source of income. They provide stability to your portfolio and can even offer higher returns in the long-term.
When uncertainty is ruling markets, dividends come as a safety net to cushion your portfolio.That is why you need to keep track of the companies which are paying out high dividends. One such company which has announced to pay a dividend next month is Accelya Solutions.
Accelya Solutions India(formerly Accelya Kale) is a software solutions provider to the global airline and travel industry. The share is quoting around Rs 1135 and the face value is Rs.10 per share.
The company has a large global footprint with operations spread across 11 countries. It accounts for and manages more than 5 bn financial transactions and 75 m tons of cargo annually. It caters to more than 250 airline customers, travel agents, and shippers worldwide.
The company partners with airlines right from the time a ticket or an airway bill is issued, all the way through its entire life cycle until the data is converted into actionable decision support.
It derives a large chunk of its revenues from the airline vertical, which makes it a big beneficiary as economy reopens. With strategic partnership and alliances with established associations, the company caters to aniche segment.
A rich history of dividends;;For the year ended June 2022, the company has declared two dividends (one interim and one final).In February this year, Accelya declared an interim dividend of ₹17 per share which was paid out to shareholders who had the stock in their portfolio as of 4 February 2022.On 3 August 2022, the company declared a final dividend to the tune of ₹45 per share (450% on face value).
The record date for payout of the final dividend is 10 October 2022. The stock will trade ex-dividend on 6 October 2022.Combined with the interim dividend, the total dividend for financial year 2021-22 comes to ₹62 per share. Accelya has a rich history of paying out big dividends. Take a look at the table below which shows its dividend history.
Accelya Solutions Dividend History ;What about financials?
The company reported a significant de-growth last year due to significant decline in airline passenger traffic volumes because of pandemic induced restrictions.As most of the company’s revenue is principally based on per transaction pricing, the revenue linked to airline passenger transaction was impacted. However, as the economy reopened and recovered, so did the fortunes for Accelya Solutions.Take a look at the financial performance of Accelya for the past five years.The company does not have any debt on its books and has a debt to equity ratio of 0 for several years now. How has Accelya Performed on the Bourses? Over the past one year, share price of Accelya Solutions has fallen by 15%. On a YTD basis, the share price is up 5%.
Accelya share price has seen an uptrend in recent months as the Indian stock markets recovered.The company has a 52-week high of ₹1,456 touched on 14 October last year. It has a 52-week low of ₹832 touched on 20 June 2022.
Accelya Solutions; The company trades at a PE multiple of 21.9 times which is lower than the industry PE of 26. It’s price to book value (PB) stands at 6.3, also a tad lower than industry PB of 6.7.
6 common mistakes to avoid in a rising stock market :
The stock markets have really shown considerable resilience and bounced back thanks to the economic turn around and FIIs coming back to Indian markets. So investors are by and large excited over this upsurge despite some small corrections. Share market has given extra-ordinary returns to those who are smart and careful investors, much more than what other investments can . So it’s time to watch the market and do some bottom-fishing for long term gains.But informed investment strategy is a pre-requisite for unloading your hard-earned money. Please follow the tips given for safe investments.
Analysts expect the second half of the year to improve due to the easing consumer inflation index and softening commodity prices that could ease the pressure on margins. Easing inflation will encourage retail investors to stay optimistic about economic recovery.FIIs have pumped in almost Rs 16,860 crores (approximately US$ 2.1 billion) between 1st August 2022 and 18th August 2022.
The stock markets rose after four months of downward movement. The Nifty closed at 17,965 and Sensex closed at 60,326 on 18th August 2022. During the last month, the Nifty Midcap 100 has gone up by around 10% while the Nifty Smallcap 100 has gone up by around 7 percent.
Bear in mind that they had pulled out Rs 2,89,970 crores (approximately US$ 36 billion) during this calendar year between January 2022 and July 2022.
According to our research, 42% of companies that have reported their Q1 FY23 earnings so far have outperformed by exceeding street expectations.
This positive rally doesn’t mean one must forget everything and let the allure of high returns derail their plans committing mistakes that could put a brake on their wealth creation efforts. It is vital to keep a check when the markets are down. It is even more crucial to do it when the markets surge.
Avoid making these six common mistakes
1. Investing in Bulk due to FOMO
When the markets are rising, investors experience the fear of missing out (FOMO). Such investors believe it is the right time to earn some more quickly. Bulk investing is not the right approach for one to follow. Instead, invest in a staggered manner, and diversify across asset classes so that it helps to meet financial goals. One should consider staying invested for the longer term if wealth creation is the goal.
2. Exiting Quality Stocks
In a rising market, good-quality stocks could seem overvalued. Investors tend to sell such stocks and invest in stocks trading at lower valuations since the markets are rising. Doing so can be a mistake and hamper wealth creation eventually. Some of the biggest wealth creators in the Indian stock markets have always been highly valued due to being MNCs or having highly credible promoters or enjoying an increase in free cash flows year on year. So, .. if you have invested in fundamentally sound stocks, don’t exit unless there is something inherently wrong with the business.
3. Following the Herd
Herd mentality is a common investing bias that becomes more apparent when the market soars. Consider the financial goals and study the stocks instead of investing on the basis of Whatsapp forwards or tips. Don’t be impulsive; pause, research, understand if it meets the needs, and then decide. Consider taking advice from a financial advisor if needed.
4. Ignoring your Risk Appetite and Financial Goals
Investments are based on risk appetite and financial goals. Investors may ignore risks when markets are rising. Even risk-averse investors may believe in the euphoria and disregard their risk profiles. Investors must be cognizant of their risk-taking capabilities and shouldn’t go overboard while investing. For instance, one may be tempted to invest one’s emergency funds or money saved for achieving a specific financial goal. For cautious investors, sleepless nights at the slightest hint of volatility may not be far away. It could mean making mistakes in investing decisions and unbalancing the asset allocation.
5. Getting influenced by popular individuals
Today there is no dearth of popular individuals sharing their views on which stocks should be purchased or sold. They may offer stock recommendations over social media and messaging platforms. Some of them may not even have the relevant certifications. Hence, one may want to be careful while buying shares only on the basis of recommendations provided by such individuals.
One may also find renowned fund managers sharing their views on stocks or sectors that are bound to do well in a rising market. However, they could have completely different investment objectives and risk appetites which would not be aligned with those of retail investors.
6. Focusing on the next big theme or trend
Seasoned investors may be adept at changing their strategies and would be able to identify the next theme or trend that could enjoy a bull run. But retail investors would be advised to maintain a diversified profile unless they have a credible investment advisor guiding them. For instance, investors invested in IT and Pharma stocks that grew as the markets recovered after COVID-19. They believed the exponential growth phase would continue. However, when the bull run gave way to corrections, they lost money. An investor must diversify and invest in companies with prospects even when the markets are high.
Remember, markets always perform in cycles. Periods of volatility are followed by euphoric highs which can be again dented by falling markets. An investor should ideally remain invested in fundamentally strong stocks across these business cycles to create wealth over the long term. Opportunities can be discovered by conducting thorough research in both bull and bear markets.
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One share now ₹50,000. Multibagger stock hits new milestone!!!
Shares of Page Industries rallied to hit the ₹50,000 apiece mark for the first time as the stock surged to life time level of ₹50,338 per share on the BSE in Friday’s early deals after the apparel manufacturer reported a multi-fold jump in the first quarter net profit.
Page Industries Ltd on Thursday reported a multi-fold increase in its net profit to ₹207 crore for the first quarter ended June 2022 as compared to ₹10.9 crore during the April-June period a year ago. Its revenue from operations during the quarter under review was ₹1,341 crore, up over two-fold compared to a lower base of the pandemic-impacted Q1 FY22.
“From a medium-to-long term perspective, we believe Page does have (operating) margin expansion potential with Page’s EBITDA margins having remained in the narrow range of 18-21% for the last 10+ years. We believe Page has front-ended investments in new avenues,” said brokerage firm ICICI Securities while maintaining Add rating on Page Industries shares with a target price of ₹52,000.
Page Industries Q1FY23 topline was a healthy beat to street estimates, as per Axis Securities as revenue was led by strong volume growth. The company’s gross margins were below expectations on account of higher inflation in cotton and packing materials.
“PAGE saw increased momentum in sales across all its product categories driven by portfolio enhancement and distribution expansion. Total MBO coverage is now at 113,715 and the EBO network stands at 1,144 in Q1FY22. All channels and supply chains are back to normal and expect a continued robust demand outlook in FY23,” said Axis Securities with Hold rating on the stock and target price of ₹51,900.
Page Industries is involved in manufacturing and retailing innerwear, and has the exclusive licensee of Jockey International in India, Sri Lanka, Bangladesh, Nepal, Oman, Qatar, Maldives, Bhutan, and the UAE. It is also the exclusive licensee of Speedo International for the Indian market. The multibagger stock has rallied more than 18110% in 15 years since its listing in March 2007 when it was trading around ₹270 per share level.
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