High Dividend Stock Information
There are different kinds of investors who invest in the stock market; some look for easy and quick money while others look for great inflow from high dividend stocks.
Stocks will vary some have higher PE (price to earnings ratio) and smaller earnings. Investors are looking for a lot of growth from these stocks. These type of investors are looking for more than ten percent return but want more than ten percent in a few days.
Do determine the PE of a stock. All you have to do is take the share price and divide it by the earnings of every share. This result will be the PE.
The PE should stay directly in line with the growth rate of the stock. If a stock goes from 1 dollar to 1.25 then it is experiencing a 25% growth rate. The PE ratio should then also be around 25%. The stock market can be unpredictable but this is a general rule.
The price to earnings ratio follows the stock price. If the PE ratio goes down so will the stock price and likewise if the PE ratio goes up so will the stock price. Investors try to find stocks with high PE ratios and good paying dividends.
A dividend yield of over 5% is very good ROI (return on investment) because even if the stock decreases or increases in price or even stays the same you will at least get your dividend percentage.
Some stocks have very high yields of over 10% but you need to watch these stocks carefully because there can be dividend cuts in the future. - 23211
Stocks will vary some have higher PE (price to earnings ratio) and smaller earnings. Investors are looking for a lot of growth from these stocks. These type of investors are looking for more than ten percent return but want more than ten percent in a few days.
Do determine the PE of a stock. All you have to do is take the share price and divide it by the earnings of every share. This result will be the PE.
The PE should stay directly in line with the growth rate of the stock. If a stock goes from 1 dollar to 1.25 then it is experiencing a 25% growth rate. The PE ratio should then also be around 25%. The stock market can be unpredictable but this is a general rule.
The price to earnings ratio follows the stock price. If the PE ratio goes down so will the stock price and likewise if the PE ratio goes up so will the stock price. Investors try to find stocks with high PE ratios and good paying dividends.
A dividend yield of over 5% is very good ROI (return on investment) because even if the stock decreases or increases in price or even stays the same you will at least get your dividend percentage.
Some stocks have very high yields of over 10% but you need to watch these stocks carefully because there can be dividend cuts in the future. - 23211
posted by X - Men @ 3:08 AM
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