Net Asset Value Model: A Valuable Tool for Finding the Intrinsic Value of a REIT
Real estate investment trusts or REITs are companies that own, manage, and finance income-producing properties. By law, these businesses must distribute at least 90% of its profits to shareholders as dividends. Valuing REITs is a difficult proposition because of the structure of the business and the fact that shareholders receive the majority of the free […]
REITs Valuation: Methods, Metrics, and Analysis (Simplified)
Investing in real estate is one of the classic asset allocations investors have to choose, but not everyone has or wants to own physical real estate. So what is the option? How about real estate investment trusts, or REITs for short? REITs can offer fantastic returns for all investors with a higher dividend yield than […]
The High Yield Potential from REIT Dividends: Considering Taxes and Safety
Many investors look for companies with great dividend yields and distribute great dividends, and REITs are one of the best sources of dividend payers and growers. But what do we know about REIT dividends, and how do they work? Most investors know REITs first and foremost because of the attractive dividend yields they offer, relative […]
Economics 101: Macro vs. Micro Economics
Understanding the basic concepts of economics is critical to making smart investment decisions both at the stock-picking level and also at the portfolio asset allocation level. There are two major fields of economics; microeconomics and macroeconomics, and the laws of supply and demand play a factor in both which we will discuss as well. Microeconomics […]
Should I Own Exxon Solely for the XOM Dividend?
If you’re a dividend lover like we are at Investing for Beginners, then chances are you’ve at least taken a peek at the XOM dividend before. I mean, I know that I certainly have, given that it has such an impressive track record, but does that alone make it enticing enough to invest in the […]
Types of Inflation: Demand-Pull vs. Cost-Push Inflation
With inflation now running over 4% in the U.S. and other developed countries, investors are wondering how to classify the seriousness of the situation. As this article will discuss, the two main types of inflation are demand-pull inflation and cost-push inflation. Both demand-pull inflation and cost-push inflation are likely contributing to the economic environment we […]
Building A Portfolio with ETFs: A Beginners Guide
Successful investing doesn’t have to be complicated; the most important factor is to find a method and strategy that works for you. Whether that be picking individual stocks or building a portfolio with ETFs. The growth in ETFs (exchange-traded funds) since their introduction in the 1990s has exploded across the investing universe. Since the first […]
Dividend Theory: For Big Tech, Dividends are a Moral Imperative
The theory of dividends has long been disputed. As interest rates have declined, dividends have become less attractive. As growth stocks have reigned supreme, dividends have taken the backseat. In today’s fast, high, and big tech world, we need to reconsider dividend theory. Shareholders need to push companies, like the big 4 tech companies, to […]
What are the Stock Market Sectors? – Global Industry Classification Standards
One of the most common ways investors think about a company and analyze their portfolio diversification is by sector. There are 11 main sectors used by the S&P and MSCI in their popular Global Industry Classification Standards (GICS), which was started in 1999 to offer investors a standardized way to segment the market. From these […]
The Two Main Types of Quantitative Stock Analysis Described
Quantitative analysis for stocks means finding the value (or “valuation”) of the stock using numbers. There are two main types of quantitative valuation methods for stocks—relative and absolute valuation. Both relative and absolute valuation metrics use numbers only, making them purely a quantitative analysis. Both have already been defined, so we don’t have to reinvent […]
