One of the arguments against investing on the basis of dividend yield is that the stock market is about capital gains, hence everyone is looking for capital gains. It is very rare to see a buy report coming purely on the basis of dividend yield. However when markets correct sharply, pretty much similar to what we have seen in the last couple of weeks, a dividend check is something which may bring a smile on an investor phase. For the purpose of this report, we had kept the dividend yield of at least 8 percent as a benchmark. The reason for this is that dividend yield should be higher than the interest rate provided by banks on FDs. Another condition was that the company should have a track record of paying dividends, without interruption, for at least four of the last five years.
