I had initially invested in Nerolac to diversify my investment in paints—I had earlier invested in Asian Paints. But Nerolac’s continued underperformance has made me put it in my ‘ignore’ watchlist. I have small money invested it but it is in perennial loss so let me ignore it, not look at it and it might simply go away.
- I have invested 7 times across these five years.
- The company pays dividends regularly and my dividend yield at cost for a year has always been hovering around 0.5%. Except for last fiscal year, 2022-23, where it was just 0.17%.
- My investment in Nerolac has never been able to beat the Nifty 50 Index. Except for that one week in Jan-2021. Since last two years, the underperformance has simply widened.
Investment through the years
Returns
The dividend yield at cost mentioned in the graph above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.
| Fiscal year | Dividend yield at cost |
| 2018-19 | 0.52% |
| 2019-20 | 0.52% |
| 2020-21 | 0.49% |
| 2021-22 | 0.53% |
| 2022-23 | 0.17% |
To calculate the dividend yield at cost in the above table I use the below formula.
(Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100
Profit Percent
XIRR
