Dividend Metrics
what is the dividend yield
The percentage of a company’s stock price is paid out as a dividend.
what is dollar cost averaging
Buying shares of stocks at regular intervals, regardless of current share price
what is the income statement and what is it used for
an overview of the money a company has coming
in (Revenue) versus the money a company has going out (Expenses)
and what their total profits or loss is (Net Income)
Where do you go to get background info on your company
Financial Websites- Yahoo Finance, Motely Fool, Nasdaq.com,MarketWatch, Seeking Alpha, and your brokerage sites,Charles Schwab, Fidelity, TDAmeritrade, and Robinhood.
What does the PE ratio suggest is a fairly valued share price
15 - 25%
what is the dividend payout ratio
Percentage of how much money a company is returning to its investors vs how much it keeps on hand to reinvest in growth, pay off debt, or add to cash reserves.
what is value
Waiting for the price of great companies to drop significantly from its high
what is the balance sheet
The net worth of a company.
Why do you wanna do research on your company for the long term
to see How they operate , to see How they make their money & how good they at making their money and implementing strategies Their plans for the future
What do you do when you find the PE ratio is high
MOVE TO THE PEG RATIO
what is the Dividend Adjusted Growth Ratio
ratio that factors in the PE ratio plus growth plus dividends to see if a stock is currently a good value
what does it mean to average down
try to consistently purchase more shares of your company at your current average share price or below.
what is the cash flow statement
A statement that tells you where a company is getting
their money from and how much, versus what they are spending their
money on and how much- how a company’s money moves.
what is Warren Buffet famous quote on research
“As long as you can understand the story of the company then you will do well, but if you cannot then you are poised to lose money.”
What is the PE ratio
Share Price
whats usually a good payout ratio
A good payout ratio is usually between 30%-55% of a company’s earnings.
what does it mean to buy growth companies
Buying companies that are growing rapidly
what are gross profits
the profit (or loss) a business makes after Cost of Goods Sold (COGS) is taken out
What are conference calls ?
When earnings are published, companies usually have conference calls that investors and even potential investors can freely sit in on or listen to the replays or read transcripts.
What is over considered overvalued in the PE ratio
Over 25 %
whats a desirable dividend yield
(3%-5%)
what are dividends
Purchase companies that pay dividends to ensure a steady stream of income
what is the profit margin
The percentage of the revenue that is pure profit-
What are the 10k and 10q's
10ks - A company’s yearly business plan and financial report- long and boring but read
10qs - to stay up to date with the most recent earnings and events for the quarter within the company quarter
What does the PE ratio help you figure out
If the stock your investing in is Overvalued , Under valued , Priced Fairly