More Thoughts on How to Analyze a Stock’s Growth
If you listened to Andrew and Dave’s recent episode dividend growth investing, or maybe your even read my post that talked a little bit more about investing in a growth stock and felt like you were craving a little bit more, I have good news – we have more for you! Andrew and Dave recorded […]
Should Investors ‘Buy the Rumor, Sell the News’?
Have you ever heard the saying “buy the rumor, sell the news?” I hadn’t heard it before until Dave said it on an episode of the Investing for Beginners Podcast, but the more that I thought about it, it seems like that’s the exact philosophy that so many people seem to have nowadays. If you […]
What Investors Can Learn from a Possible Amazon Stock Split
Amazon stock split? What the heck. “Hey, I have some AMZN stock, don’t split mine in half!” Was that you just now? If so, take a deep breath, it’s going to be OK. That’s not what we mean when we say stock split! Let’s first start off by saying what a stock split even is… […]
What is a Good Payout Ratio?
Last week I talked about dividends and specifically tackled the question of “what is a good dividend yield?” While a good dividend yield is extremely important, it can be argued that the payout ratio is even more important. The payout ratio is rather simple – it’s the ratio of the dividend/share to EPS. For instance, […]
What makes a Good Income Stock, and Are They Better than Growth Stocks?
An income stock is appealing to investors thinking about retirement because they can provide a consistent stream of income and are seen as more safe investments. But, not every income stock is built the same. Some income stocks end up being much better investments than others, and how investors can determine the difference often depends […]
Dividend Ratios Pt. 1: Evaluating the Dividend History of a Stock
One of the most disturbing trends on Wall Street that I’ve noticed over the last 100 years is the movement away from an emphasis on dividends and a thorough examination of a stock’s dividend history. There’s several reasons for this. One, a stereotype has been perpetrated that dividend stocks are only for risk averse investors, […]
Dividend Ratios Pt. 2: How to Identify Sustainable Dividend Growth
As we discussed in part 1 of this dividend mini-series, there is much focus on the past dividend growth of a stock– yet this doesn’t give a complete picture on well a company really performed. Go back to part 1 to get background on WHY we need a better metric to measure a stock’s dividend […]
Dividend Ratios Pt. 3: Measuring a Stock’s True Dividend Payout Ratio
Measuring how much a company is growing in size, and how much it has grown its dividend, is only one part to finding great dividend growth investments. Just like many metrics used today don’t consider both aspects of sustainable growth (as we discussed in the part 2 of this dividend ratio series), there’s a part […]
Dividend Ratios Pt. 4: Combining Two New Metrics & Putting It All Together
In part 1 of this dividend ratios series, I reviewed some of the most common metrics used by dividend investors today, and what these metrics lack in telling us the entire picture of a company. Parts 2 and 3 introduced two dividend ratios to better evaluate how a company truly performed and how this translated […]
Guide: How to Evaluate a Stock Using Price Based Metrics
Updated – 12/14/23 Learning how to evaluate the price of a stock means determining if the price is right, or not. The reason this is important, is because you could buy a stock with the best business in the world but still get a terrible return on your investment if you pay too much. It’s […]
