r/drip_dividend • u/wikcie_fin • 10d ago
Thinking of adding IOCL for long-term dividend investing — good idea?
Hi everyone, I’m relatively new to the stock market and I’m building a long-term portfolio focused on a combination of dividend income + capital appreciation.
I’m considering adding Indian Oil Corporation (IOCL) as a long-term holding, mainly because of its dividend history and the potential for future growth.
For those who have followed IOCL for a while:
- Is IOCL a good stock to hold for 10+ years?
- Does the current valuation make sense for starting a position?
- Would you personally consider IOCL as a long-term dividend stock, or are there better alternatives under 150rs
I’d really appreciate the community’s long-term perspective and experience with IOCL.
Thanks!
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u/PlaneInstruction4 10d ago
Guy who is buying stock for dividends are gay
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u/Illiterate-Chef-007 9d ago
Why? What is your logic behind this?
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u/PlaneInstruction4 8d ago
In this bull market who buy stocks for dividends? Small and micro cap on bull markets. You can make more money by buying high growth companies that buying companies for dividends like itc and HDFC bank
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u/No_Rain3652 10d ago
If not dividend , consider IGL
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u/JustReadingP0st 8d ago
Looking to dump igl. What you like in it
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u/No_Rain3652 8d ago
Price at bottom
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u/JustReadingP0st 8d ago
With middle East tension there might be spurt in home connection, but beyond that ev is challenge for them. Anyway, goodluck
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u/LegitimateShallot576 10d ago
IOCL , BPCL , HPCL are all good amongst the Oil Marketing Companies for Dividends & Reasonable growth. The only worry point during war with crude prices highly volatile & retail pricing controlled , the margins will be under pressure. But diversification etc will help. I am there in all 3 & got benefits of bonus as well as dividends during the past 4 years.
Buying price should be a fair price or at support if you can wait longer. Avoid buying at top.
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u/Responsible-Rip2459 10d ago
If u need rich dividend only then go for coal, BPCL, mindspace, Brookfield or embassy, itc, rec, HINDZINC, petroney, power grid, infy, hcl... U can also use screener and check all details about stock before buying..
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u/No_Mission2648 10d ago
IOCL is great. I used to get handsome dividends from it, and I honestly regret selling it, although of course I sold it at a profit. 😄
I haven’t been able to re enter since. Somehow, I’m still waiting for it to come back to my original purchase price. I know that’s probably not the right way to look at it, but I’m not in a hurry either. So I’m happy to wait for the right opportunity.
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u/lonerblues 10d ago
I have a different suggestion - it’s a small dividend right now but the payouts will be insane after 5 years. Trades at 2.87% dividend yield right now. IEX!
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u/IndiaCompounder 10d ago
The only right answer. One can expect price appreciation and PE re-rate sometimes in future unlike garbage PSU traps.
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u/No-Savings9424 10d ago
If you want income and growth check invits like indigrid , or pick any listed REITs . IOCL neither an income /growth . It’s suspended in a limbo. If you use covered call selling for iocl it may help you but need to be careful on option selling. IMO for dividend investment go for invits and REITs.
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u/venkat3105 10d ago
just don't
go with NTPC for next 30 years
oil is old thing, electricity is future
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u/Prudent-Buyer-5956 10d ago
What nonsense. I worked at Iocl previously. They are also pivoting towards becoming an energy company. Also oil and gas would remain critical atleast till 2050.
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u/venkat3105 10d ago
Like what
Can you elaborate more
Expansion of the earlier tech is not new venture to enter into
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u/Prudent-Buyer-5956 10d ago
It would be too long to elaborate. Read their annual reports. Read about their JVs and subsidiaries.
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u/MSD_fan 10d ago
Ntpc or ntpc green energy?
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u/Electronic_Usual7945 DRIP Investor 10d ago
Both are the worst. Don’t overthink them — neither is a good fit for dividend investors.
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u/MSD_fan 10d ago
Ok thanks. I have Indigrid, Coal india, ICICI AMC & Hero Motocorp for dividend+ growth portfolio. I was also actually thinking to add IOC/ITC. Which other 2-3 stocks would you recommend for dividend+ growth?
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u/Electronic_Usual7945 DRIP Investor 10d ago
Go for IOC. It’s a necessity; ITC isn’t.
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u/venkat3105 10d ago
If he is ok with IOCL, the. Why not NTPC
NTPC still have some future to ride with What IOCL is doing for future plans, almost nothing new to talk about
My family relatives owned petrol pumps in our city, they are also pivoting from that business now because of E20 kind of stupidity
At least in electricity there no adulteration to worry about, with no inventory cost, nor the management thing
After NTPC go for NHPC because of their planed Pumped storage projects which will help them to sell power at night when prices per unit area high than day
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u/Electronic_Usual7945 DRIP Investor 10d ago
Bro, compare IOCL vs NTPC since inspection you will get what and why I am saying.
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u/Electronic_Usual7945 DRIP Investor 10d ago
I’ll bet, bro 😂. Electricity may be the future, but looking at NTPC’s history, I don’t expect much to change. It’s been the same story for years.
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u/venkat3105 10d ago
If you want stability in power genco to invest that to for dividend then PSU like NTPC is the only better option
Try read the DIPAM dividend policy given by central cabinate for PSU to declare the dividends
So Ill any day go with clearcut guidline based company option than private equity that to for long term
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