hi everyone welcome to today's video so take a look at this particular email this is ITC making its dividend announcement and I as a shareholder received this email and I got super happy I started dancing with joy because money was hitting my bank account it's a great occasion people start celebrating and ITC is one of the Prime reasons why a lot of retail shareholders celebrate because they are getting dividends so it's a great feeling to have so I thought that I will shoot a simple video explaining five assets that I own that give me regular cash flow and whether or not it makes sense for you to purchase these assets so I'm going to have a complete discussion and towards the end of the video I will tell you two of my favorite assets out of these five where I'm increasing my holding because these are some of my favorite passive income sources so to say so let us get the video started also a very quick disclaimer that I make roughly 1 and a half to 2 lakh rupees a month through dividends through these passive income cash flows why is that because I have a big portfolio so I have constructed this portfolio over several years now it has become big therefore I'm getting cash flows in the form of divs so that is a simple answer to how do you make a lot of dividend income you need to have a big portfolio in the first place that is the honest answer here now let's move on to talking about five assets but let me first and foremost take you to screener and show you how to create and filter out stocks as per their dividend paying abilities so what you simply do is that you go on screener and click on this screens and then you click on create new screens then you type dividend yield greater than 3% so you will get a list of all these stocks so there are 104 stocks and now this gives you a list of stocks that are paying more than 3% dividends why did I pick 3% dividends because the general consensus is that if a stock is giving more than 3% dividend yield then it is considered to be a decent dividend paying stocks now one obvious question here would be that hey akhat I see some of the stocks for example bomber it's paying 10.02% dividend I'm also seeing something like taparia tools it's paying 1, 188% dividend so should I not be investing in these type of stocks please watch this video I've done a complete discussion whether it makes sense to purchase dividend paying stocks or not so in case you don't have time to watch that entire video let me present a very quick summary in 1 minute so the entire idea is that how do you make money as a shareholder so there are two ways in which you will be making money let's assume that you have purchased ITC and you are a shareholder in ITC then the two methods would be that number one the stock price which is trading at 244 it goes up so it goes up to 260 you are sitting on a profit of 16 rupees per share so this is called as asset appreciation and this is the first way you can make money second is that the company decides to pay out a part of their profit in the form of dividends so this hits your bank account directly now you might have a counter question that okay there are stocks that are not paying any dividends or they are paying very low dividend should I avoid them completely will I be making any money what happens in that scenario so you'll find a lot of stocks for example Hindustan unit Li pays very little dividend but is it a bad stock the answer is no why because there might be asset appreciation of that stock that is the reason why people are purchasing Hindustan un L TCS or page industry so to say these are all good stocks that do not pay very high dividends to begin with so I want to put out a very clear disclaimer that just because a stock is not paying high dividend does not make it a bad stock so please do not believe in that because even a stock that is not paying out dividend can undergo this asset appreciation so it becomes very important so this brings us to a related concept that should I go and purchase a stock like taparia tools it is giving out like 1, 188% dividend yield should I go and buy it the answer again is no because what can happen the reverse can happen for example there can be asset price depreciation the entire stock that you had purchased that stock can literally go to zero or become really low I'm not giving a pro or Con on the paria foods per se I'm just telling you that that's a scenario that happens very very frequently again go and check my video you will get a complete understanding but moving on I hope you get the point that number one high dividend paying stocks are not necessarily good stocks low dividend paying stocks are not necessarily bad stocks so with that out of the way let me present five specific assets that I own in my portfolio that are giving me good passive income now the first asset is ITC why do I own it there are three specific reasons why I own ITC right now first is that it is a high dividend paying stock so every time money hits my bank account so I feel super happy I start dancing not literally I'm a horrible dancer but figuratively speaking I start dancing so it's a high dividend paying stocks it gives me regular cash flow it stabilizes my cash flow so to say majority of the other stocks that I own are not dividend paying stocks for me so ITC becomes a prized position for me from that particular perspective that at least I'm getting some regular income from the stock market this is the first key reason second key reason why I own ITC is because I am bullish about itc's fmcg business now I have made a separate video on ITC so you can go and study that video in detail where I have broken down the business elements of ITC but very quickly recapping that ITC has two prominent major business lines there are multiple business lines but two prominent one is the tobacco or the cigarette business majority of itc's Revenue comes from tobacco or cigarette business it is a market leader it is a monopoly that's the first business line the second business line that is growing for ITC is the fmcg or the Staples Business now here is a very quick look it shows you the market share that ITC enjoys even in the notebook market so 25% of share is owned by a brand called as classmates which is owned by ITC same goes for the instant noodle that approximately 23% of the market is owned by yippi which is a noodle brand which is competing against likes of Maggie Etc so these are two brands that are coming up from itc's domain as the fmcg or Staples Business of ITC grows ITC stock will also give appreciation that is the Hope with which I'm holding ITC let me know in the comment box that do you think that ITC will give a run up or not give a run up I would love to hear your Viewpoint now comes the third reason why I own ITC so ITC is a defensive stock it is a stable stock and it has a very clean management so I'm sure that none of us would question the management of ITC it has not had any issues in terms of accounting or some fraud has happened at ITC all that stuff so it has cleaned books similarly ITC is a defensive stock for example when it comes to banking Finance something like baj Finance if the market moves up by 2% baj Finance usually moves up by 4% but if Market Falls by 2% then baj Finance Falls a lot also so stocks like baj Finance are highly aggressive on the flip side ITC is a defensive stock therefore I own it because majority of my portfolio is growth portfolio it's aggressive portfolio so I hedge it by buying stocks like ITC in fact ITC is so stable so stable so stable that whether the market moves up down it just stays consistent okay let me show you this chart so one year ago ITC was trading at 240 rupees now again it danced around all this file all this file all this file and then it came back to 244 245 rupees so the bottom line being that ITC keeps on dancing in that range only and it keeps on paying dividends now why is that happening will ITC stock grow or not grow again please watch my video you will understand more but there is a major risk with ITC stock and there is a reason why it keeps on dancing around in that range the reason being that itc's major business which is the cigarette business it is highly dependent on the government policies if government decides to increase taxation on Tobacco or sin products per se then a company like ITC is going to suffer a lot so that is the fear that people have especially in this type of an environment When government needs to make money it will probably go and tax companies like ITC more so people are little bit scared so therefore ITC stock does not give much appreciation so that is the simple reason of not holding ITC so bottom line should you be holding it I've given you a pro and con analysis now tell me in the comment box will you be owning ITC or not let's move on to the second asset that I own in my portfolio and the asset is nmdc so if I take you back to that chart and I will Zoom it here please take a look that nmdc gives a dividend yield of 9.73% so again nmdc good yield just a very quick background of the business that nmdc is owned by the government that is the majority shareholder in nmdc it's National mineral Development Corporation essentially what the company does is that it extracts iron ore it also has diamond mines it is getting into processing of Steel so essentially it's in the iron or business and it's a monopoly stock in that domain now why do I own nmdc there are three specific reasons one is that it is a monopoly stock Monopoly stock means that it is a dominant stock in one particular industry which is iron or mining so this is the biggest company in India from an iron or mining perspective it's a natural resource government has massive control over it but you will say akat you are against owning PSU stocks and you are not an investor in IRCTC it is also a monopoly stock so why are you owning nmdc Visa is something like IRCTC okay let me explain that very very quickly again that when it comes to something like IRCTC who is the end consumer the end consumer are people like you and me we are mango people and IRCTC is a b2c business business to Consumer so we are consumers directly consuming from IRCTC so government will face a lot of heat if it increases the ticket price because mango people like you and me will get affected when it comes to something like nmdc nmdc is mostly a B2B business it is supplying iron or to home so after processing Steel the steel is not used by unb directly steel is rather used by industry and big factories all that stuff also related point is that the price of steel in India is linked to International Market so it's not as if that government will willingly increase it or decrease it yes they can technically do it but it is highly unlikely that Indian government will increase the steel prices when the global steel prices are falling down this is a commodity stock whose prices are linked to International Market and they are selling it to businesses so from that particular perspective there will not be a lot of hoopla in terms of increasing Ste prices all that stuff this is reason number one reason number two is that this company has certain bit of mo mo means competitive Advantage so here is a chart for you please zoom in and see and you will see the steel production prices in India reserv is the other parts of the world now steel is used by Industries all across the globe India is also using it there is big demand of Steel in India and the steel production in India is not that expensive as in some other parts of the world so we are a reasonably okay producer when it comes to producing steel so from that particular perspective nmdc is a good company because it can produce steel at a lower price and therefore our Industries also benefit from it if it happens that the steel production in India is super expensive then it would rather make sense for us to close something like nmdc than import all the steel that we need from different parts of the world but we are not doing it why because we are competitive and nmdc is playing a role in that entire supply chain now the third reason and the biggest reason why I hold nmdc is very simple that I got to purchase nmdc at a lower prices for example if I show you the chart you will clear clearly see that nmdc in the last 10 years has gone in in a very cyclical format for example it goes up then it goes down then it goes up again goes down goes up then it forms a curve then it goes up again goes down so on and so forth so if you purchase it in a downturn it is most likely going to go up so I ended up purchasing at the downturn so I'm okay in terms of holding it and benefiting meanwhile from dividends and again just to cut the entire story short I'm not a big holder of commodity stocks or PSU stocks nmdc is one of the few exceptions on my portfolio now the third dividend paying stock that I own is britania Industries it also pays out decent amount of dividend so this is the dividend that it pays out it's a decent number in terms of dividend yield now why do I own britania the answer is fairly simple it's an fmcg stock I have a sector allocation on fmcg which comprises of companies like britania it comprises of daber it comprises of H it comprises of nestle so these are some of the companies that I own in my fmcg portfolio and ITC and britania are two top companies that pay me a lot of dividends it's again very similar to ITC it's a defensive stock majority of my portfolio is aggressive portfolio therefore I end up purchasing something like britania to hedge my portfolio should you be owning something like Britannia again if you're looking to take positions in fmcg stock right now it's a good time to invest in fmcg company there is no fundamental problem per se when it comes to fmcg stocks these companies are going to go up Britannia is a market leader it has gone up and down but the stock price growth has been really really consistent for example let's take a look from 2015 onwards and it's a very clear trajectory right that it was trading at, 1500 rupees it came up all the way to 4,500 rupees in a matter of 66 a half years which is very very good growth no problem there for a stable stock like britania so from that particular perspective if you're running after a little bit of dividend if you want to build a slightly defensive portfolio then having something like britania in your portfolio might make sense now comes two of my favorite assets to own and these come from the crypto space now please don't drop off please listen to this part very very carefully because it can give you new knowledge so please listen to it with an open mind so very quickly let me speak about the crypto passive investment options so if you go on W you can take a look at these particular assets at the bottom of the page and you can check out that which coin is giving what percentage of return for example die it gives you a 12.68% passive income rate so it's like doing an FD and you can easily do it through W also similarly Matic gives 7.23% PKA do gives 12.68% so let me speak about two of my favorite coins when it comes to crypto Investments that can help you generate passive incomes these are my absolute favorite passive income SL dividend sources but let me give you a very quick concept Clarity there so for example when you were owning ITC ITC stock price was appreciating and you were making money or you were getting dividends now same scenario can or cannot play out in the crypto world for example if you own something like usdt then usdt prices are linked to US dollar I will explain it in a minute what usdt is so the growth of the asset itself depends on US Dollar on the flip side the usdt you can do a 12.68% FD on usdt Via Vault so this becomes like a passive income source for you your option two is you can go to something like PKA dot now here what happens is that it is PKA dot right so the FD returns here remains 6 12.68% I so these are my two favorite resources in terms of doing fixed deposit in the crypto world that generates a lot of passive income for me so let me briefly explain what these two things are and whether or not it makes sense for you to put it in your passive income portfolio so let me speak about usdt first so very quickly let's understand what usdt is and I'll probably make a separate video on it altoe but very very quick explanation on what usdt is that usdt in simple terms is called as a stable coin now why is it called as stable because it is pegged to US dollar for example you must have heard back in the 60s the fiat currency USD INR it was pegged to what it was pegged to gold in order to print $1 in 1960 the government used to purchase $1 worth of gold keep it in their taji and then only they used to print it exactly the same concept plays out in usdt so there is a clear linkage between usdt and US dollar in order to print or release one usdt onto the network the company that is running the usdt network it needs to keep $1 in its accounts is it keeping it is it not keeping it I will not comment as of now because the video will become really lendy so I'll shoot a separate video on that but yes there are risks in terms of holding usdt don't get super excited that hey 12.68% return I'm going to buy today itself no there are risk you should not convert everything and convert entire portfolio into usdt yes little bit of exposure to usdt is fine no problem there usdt is a stable coin whose value moves as per the value movement of USD if USD is going up then US dollar will also go up if USD is coming down then DT will also come down so that's the pegging concept of it one related note that you need to understand is that if you take a look at this particular chart you will see that the value of INR keeps on going down and it's roughly going by 4% every single year so if you convert your INR into USD and then USD into usdt what is it that you are exactly doing you are saving this 4% depreciation and the second key point that you're saving yourself from is that you now get to do a fixed deposit on VA at 12.68% so if you would have simply converted your INR into USD you would not have gotten benefit of this 12.68% FD but now you are able to do that so that's the benefit is it completely safe again let me put out the disclaimer that no that usdt is not completely safe you should put only a little bit of money in something like usdt again if there is enough interest I will explain it separately but for the time being do understand that usdt right now is one of the most popular stable coins it's not as if that it will become zero tomorrow meanwhile if you want to take a little bit of exposure to it it is complet completely okay now comes the final asset which is one of my favorite assets from this list and it is PKA dot now basically what is PKA dot the easiest explanation that I can give on PKA dot without getting into the technical details is this that PKA dot is trying to become the sun of the entire crypto solar system what do I mean by that for example here is sun right this is what PKA dot is trying to become I'm drawing horribly excuse that but what you would notice is that there are different blockchains for example there is Bitcoin blockchain there is ethereum blockchain there is Solana blockchain all that different different blockchains are there they are working individually developers are creating new ecosystems applications all that stuff but there is no protocol that is bringing all these functionalities together and poka dot is trying to do that so this is the unique part of it now if there is enough interest I will shoot another video on this but for the timing please understand this ecosystem is very valuable and lot of people are getting excited with it and PKA dot seems like that it is likely to go up so meanwhile you can benefit from it in two ways one is that if you buy poka do then PKA dot itself can give you asset price appreciation second is that again if you can do an FD you'll be getting 12.68% on vault and that's great news so from that particular perspective these are five of my assets that I own in my portfolio where I'm making a lot of passive income if it fits your needs if it fits your risk profile please go ahead and invest in it I hope you enjoyed the video please press the like button and I will see you tomorrow for
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You might be interested in learning more about dividend income and the different types of assets you can own to generate passive income. Speaking of investments, you might find the Wikipedia articles on dividends and assets helpful to further understand these concepts. Both pages provide detailed information on the topic and can help you make informed decisions when it comes to building your investment portfolio. Happy investing!
