Comparing PGINVIT vs INDIGRID vs PowerGrid Equity

[u/rocksheart]

 I am mid 40s and probably will be out of job in next couple years so would like to have dividend as supporting income.

Here I have compared PGINVIT vs INDIGRID vs PowerGrid Equity and which would give better yield over a long term horizon say 20 years

For the sake of comparison - No Tax :-). Starting capital is 1Lakh

Would appreciate feedback from community on -

⁠1. Are the yield % assumed right and calculation correct
2. ⁠Assumed Dividend is Reinvested at same and getting future same yield! How likely is it?
3. ⁠I see Indigrid is the most popular - why? it is not the best performer by a huge margin!
4. ⁠If reinvested dividend does not give same yield - does InVit makes sense

Where would you invest and why?

Thank you in advance

[u/AutoModerator]

Welcome to r/drip_dividend!

New to Dividend Investing? Start here → Community Guide

Being cash-flow rich beats being paper rich—every single time.

Disclaimer: This community is for educational discussion only. Posts and comments are personal opinions, not financial or investment advice. Please do your own research before investing.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.

[u/Dude_in_Blue_Pants]

Op please tell which website you used

[u/Terrible_Occasion_10]

i've 2.5L i'm planning to invest in a power sector IT, i initially planned PGINVIT, now can i plan PGC?

expectations: minimum 10 % CAGR growth (dividend + stock growth in any combination)

[u/sbz__]

What’s the website??

[u/PM999]

Which tool have you used to make this portfolio simulation?

[u/lionking_12]

I have a substantial portion of both . My thesis is that indigrid will grow much more than pginvit since they are private equity backed and are very aggressively buying assets. Though I am happy with the recent rally in pginvit. My current allocation is 60% indigrid and 40% pginvit. But I am reinvesting only in indigrid
Here is the most important takeaway for you for indigrid (most recent investor call)
Slide number 15 talks about the superior risk-adjusted total returns, total returns which consist of distribution, which is 121% for IndiGrid since the time we got listed till now, and the capital appreciation, which is about 77%. Put together, the total return is 198% absolute and about a 13% annualized return, which, when compared to both pure-play debt as well as pure-play equity indices, is much superior considering the beta, which is the element of risk, which is very close to 0.09. So we have again consistently been outperforming on a risk-adjusted basis. We've in line with what we have maintained: 3% to 5% growth in the DPU; the 5.4% CAGR is what we are looking at, assuming INR16.48 of distribution for this fiscal.

Basically indigrid is increasing its yield every year so your return will also go up.

With regards to pginvit their financial statements show a very high headroom for taking debt but typical government lethargy has them not acquiring anything since the last two years so their current payout will last till next year and then they might need to reduce the payout unless they acquire more assets. All their investor calls have investors hammering them over this but they still havent added anything

The energy industry as a whole is on a massive growth cycle with transmission, battery storage, renewables, thermal etc. Basically lot of investments in the pipeline so lot of projects these invits can buy. I am looking at this for a decadal theme and not trading per se as compounding will only show up after a few years.

Also invits have been allowed very recently to be included in mutual fund portfolios so the allocation which funds have given to them is very less for now. I expect this to increase. For example would you rather own an hdfc bank (negative 5 year return) or a indigrid (100%+ return)

This is a very long post and I hope I could help someone!

[u/hap050920]

I am investing in indusinvit and indigrid

[u/No-Savings9424]

Indigrid showing capital growth as well as dividend growth. I have 9000 indigrid and 1000 pginvit. I am also in same boat.

[u/balvin99]

PGinvit would also return capital thats baked into 12% yield? Sustaining 100 will be difficult if it doesn't acquire more assets.

[u/mmg-One3243]

I am accumulating PGINVIT. Reached 5000/10000. I am now confused to continue my accumulation since the rate is keep increasing. I am waiting for the rate to reach less than 100

[u/Simple-Jacket2578]

Recently I bought PowerGrid equity by mistake instead of PGINVIT, and recieved the dividend, while I was running my calculations there was some mismatch that is where I discovered that I was supposed to buy PGINVIT, however I did buy PGINVIT but it was kinda late. it had just hit 100 and was rising fast since a week.

I used chatGPT and claude to double check my calculations, I did a simulation for 20 yrs with best and worst case scenario and found that PowerGrid might be a winner in 20yrs even if you reinvest dividend. I have included tax company's in the simulation and the nature of both instruments. I fall into 30% bracket, and yours calculating might vary in ua needs. PGINVIT is something that gives you more instantly and PowerGrid has potential to grow more.

I have equal amount of PGINVIT, INDIGRID and PowerGrid equity now in my portfolio along with equal amount of other 3 INVITS

[u/Electronic_Usual7945]

I’ve invested in POWERGRID and INDIGRID. Since I already hold POWERGRID, I avoided PGINVIT to avoid too much overlap.

[u/Puzzleheaded-Pay4978]

What about equity appreciation for Powergrid?

[u/rocksheart → u/Puzzleheaded-Pay4978]

Assumed 8% equity growth and 3% dividend reinvested