Dividend yield companies are attractive for investments. Business depends on cash flows: there are two types of cash flows POSITIVE Cash flow (Income > Expenses) – Profit, NEGATIVE cash flow. (Income < Expenses) – Loss.
Positive cash flow companies give /distribute dividend (Part of profit) to its shareholders. Dividends are given with real profits so naughty businesses with unreal profits or fraud companies with exaggerated profits are unable to share dividends. In short, it’s important to identify Dividend yielding stocks and invest in such stocks In drawdown of market Dividend yielding stocks become resilient (don’t fall much) as dividend yield becomes attractive.
Templeton Equity Income fund comprise high quality Dividend yield stocks. This fund has strong track record and it has beaten. Benchmark with good margin. We suggest you to start your SIP in Templeton equity Income fund from long term perspective.