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.
Price to earnings ratio or PE is used to determine stock growth. A stock with a high PE and smaller earnings has more growth potential. Investors want more than 10% return from these types of stocks.
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 stock market is very unpredictable but many investors say that the PE should stay with the stocks growth. For example if a stock traded at $10.00 and then reaches $12.50 then the growth is 25%. The PE should also be 25% then.
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.
There are stocks with dividends of higher than 10% but you need to watch theses stocks because of dividend cuts in the future. Predictions and past experiences can cause dividend cuts. - 23208
Price to earnings ratio or PE is used to determine stock growth. A stock with a high PE and smaller earnings has more growth potential. Investors want more than 10% return from these types of stocks.
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 stock market is very unpredictable but many investors say that the PE should stay with the stocks growth. For example if a stock traded at $10.00 and then reaches $12.50 then the growth is 25%. The PE should also be 25% then.
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.
There are stocks with dividends of higher than 10% but you need to watch theses stocks because of dividend cuts in the future. Predictions and past experiences can cause dividend cuts. - 23208
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posted by X - Men @ 4:32 AM
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