Growth, Value & Dividend Stocks!!
While looking for the best stocks to invest in, different investors have different requirements and preferences. Although there are thousands of stocks available in the Indian stock market, there are three categories of stocks that most investors are interested in. Growth, Value, and Dividends stocks!!
Let’s have a look at these three types of stocks and their key characteristics:
- Growth Stocks: Those stocks that grow rapidly in terms of Revenue, Net profit, etc, compared to the competitors or industry growth rate are called Growth stocks. Ex: Avenue Supermart (DMart), Adani Gas, Bajaj Finserv etc.
- Undervalued Stocks: These are those stocks whose market value trades below their true value or intrinsic value. Ex: ITC, Aurobindo, ACC, Hero Motocorp etc.
- Dividend Stocks: These are those stocks that pay regular and high dividends to their shareholders. Ex: Coal India, Indian Oil, REC, Hindustan Zinc, Bajaj Auto, Powergrid, etc
Most investors pick stocks from any of the above categories to get the best results according to their requirements. In addition, three more types of commonly popular stock categories worth mentioning here are:
- Blue Chip Stocks: These are large, well-established stable stocks with an excellent reputation. Ex: Reliance Industries, Asian Paints, HDFC Bank, TCS, etc.
- Cyclical Stocks: Stocks that are directly linked to the economy’s health and perform well when the economy is performing well are cyclical. Example: Voltas, Indigo, Hindalco, Tata Steel, etc.
- Defensive Stocks: Those Stocks that offer products/services that people always need and are recession-proof are known as defensive stocks. Example: Hindustan Unilever, Dabur, Zydus Wellness, Tata Consumer Products, etc.
You can find the list of all these types of stocks along with their fundamentals of Trade Brains Portal, the best stock research website in India.
Further, do let me know which type of stocks do you prefer while investing in the comment section below. Have a great day and Happy Investing!
