HDFC Mutual Fund has launched HDFC Dividend Yield Fund, an open ended equity fund that aims to invest in dividend yielding companies that have a consistent track record of paying dividends and companies having dividend yield higher than Nifty 50 index.
Dividend yield ratio that shows how much a company pays out in dividends/buyback each year relative to its stock price.
In a press release, the fund house said that the fund is suitable for investors looking for a diversified portfolio of dividend yielding stocks for long term capital appreciation. Ideally, investors should invest in this fund with at least 3-year horizon.
Sharing the fund management strategy, the fund house said that they will look at companies with stable business models and stable cash flows, companies where profits are expected to grow which will lead to increase in dividends and companies trading at attractive yield of at least 1x to 2x G-sec yield.
