ONGC is one among the best passive investment stocks which has a good dividend track record as well as good fundamentals. Price reaching 1100 levels gives an attractive 3% dividend yield on this stock. Can we buy it here for a long term investment? Though the price looks attractive, wouldn't it be nice to get an investment which appreciates after we invest than to depreciate. Yes, ONGC's weekly charts are gaining more bearish strength, which says that there is more to come on the bear side. This means we can get it still cheaper, and even in case we have to give back some advantages in price in waiting for strength that would still be to our advantage.
A stock which has bullish strength at the time of entry will appreciate in value almost immediately and coupled with that we have a guarantee of good dividends. Keeping this stock on close watch to get in at the right levels would be to our benefit.
I appreciate your comments on ONGC. There is one more stock Bajaj Auto. The stock has paid Rs 40 in the last dividend. The dividend yield is more than 3%. The company may increase dividends to Rs 50 in a year ro so. The stock saw correction in the recent times. They have posted very good numbers this Quarter. What's your view on this company?
ReplyDeleteBAJAJ-AUTO is an equally good stock and has all the criteria's through, to be a passive investment stock. At one level which it goes a step down, is the near 100% jump in its previous year dividend payouts.
ReplyDeleteThis erratic change gives the stock a little less grade on the ranking. But, this stock is a big growth stock and demands it's own space in every long term portfolio.
BAJAJ-AUTO stock has at present gained more weakness on the weakly charts & indicates further correction, we can wait for a re-test of lows and have some bullishness built into the stock before we stretch our hands on this value investment.