Eight years as shareholder of HDFC Bank

My investment in HDFC Bank has completed eight years now. While it does seem long to me but when I see more than 40% of my investment coming in last two years I realise it’s still young.

Did I beat the Nifty 50 Index? For the first 6 years I did. Since last two years, I have been underperforming Nifty 50 Index.

Will I continue investing in HDFC Bank? Yes, at least for next one year.

How is my dividend yield at cost? At 1.6% I would say decent enough.

Investment through the years

Returns

The dividend yield at cost mentioned in the chart 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 yearDividend yield at cost
2015-160.16%
2016-170.95%
2017-180.74%
2018-191.00%
2019-200.88%
2020-210.00%
2021-220.48%
2022-230.90%
2023-24 *1.43%
* Data as of 8-Jul-2023

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

XIRR


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