My investment in Divi’s Laboratories has been my biggest missed opportunity. Six years back—still new to equity investing—I was looking for Pharma stocks to invest. During that research—not sure if I should call it research, but let’s go with it—I came across Divi’s Laboratories. I made a small investment in it and forgot about it. In the next 3.5 years the stock went up 5 times! And I did not make a single new investment during that time! Every time I thought “it can’t go up any further than that”. Boy was I wrong. So, so wrong!
In the last two years I decided to significantly increase my position but ended up buying at price which subsequently corrected by a good 25% resulting in signification notional loss for me. In fact nearly 70% of my investment in Divi’s Laboratories has been in last two years. So my investment is very young.
Did I beat the Nifty 50 Index? No, my investment is underperforming since last 1 year. While Nifty 50 Index would have given me 14% Divi’s Laboratories has given me 8%.
Will I continue investing in Divi’s Laboratories? Yes, at least for next one year.
How is my dividend yield at cost? Nothing to write home about. You can see them in Returns.
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 year | Dividend yield at cost |
| 2017-18 | 0% |
| 2018-19 | 1.58% |
| 2019-20 | 5.05% |
| 2020-21 | 0.00% |
| 2021-22 | 0.33% |
| 2022-23 | 0.45% |
| 2023-24 * | 0% |
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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