Investing in dividend-paying stocks can be a better option than risk-free small saving schemes such as PPF, EPF, and bank FDs. This is because sometimes these stocks can offer a double benefit – a high dividend yield that beats traditional risk-free investment options, and a significant increase in value over the investment period.
PFC is a prime example of a dividend-paying stock that has provided a double return on investment to its long-term shareholders. Over the last year, PFC has declared a dividend of ₹10 per share while also experiencing a 30% increase in share price. This has resulted in a significant benefit for those who have held onto their PFC shares for the long term.
The rise in PFC’s share price has been significant, as a year ago, the shares were valued at around ₹120 apiece. Since then, the increase in share price and the dividend yield have combined to deliver a double bonanza for PFC’s long-term positional shareholders.
Investors looking for dividend-paying stocks like PFC should carefully consider the company’s financial health and dividend payout history before investing. It is also important to monitor any changes in the company’s financial performance that may affect its ability to pay dividends in the future.
Overall, dividend-paying stocks like PFC can offer investors a great opportunity to earn a regular income while also benefiting from capital appreciation. However, investors should always conduct thorough research and due diligence before investing in any stock to ensure that it aligns with their investment goals and risk tolerance.