Will IShares Core (USA Stocks:IJR) and HDFC Bank (USA Stocks:HDB) deliver in February?

A dividend is the distribution of a portion of HDFC Bank earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. HDFC Bank dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. HDFC Bank one year expected dividend income is about USD0.28 per share.

Investing in stocks that pay dividends, such as stock of HDFC Bank Limited, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in HDFC Bank must own a stock before its ex-dividend date to receive its next dividend.

HDFC Bank financial leverage refers to using borrowed capital as a funding source to finance HDFC Bank Limited ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. HDFC Bank financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between HDFC Bank's total debt and its cash.

In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding HDFC Bank together with similar or unrelated positions with a negative correlation. For example, you can also add Mitsubishi UFJ to your portfolio. If Mitsubishi UFJ is not perfectly correlated to HDFC Bank it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When HDFC Bank, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.

Please note if you are using this as a pair-trade strategy between HDFC Bank and Mitsubishi UFJ, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.