About High Dividend Stocks
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 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 PE ratio follows the stock rice. If the stock goes down so will the PE ratio. Many investors look for a good PE ratio what that pays good dividends to decrease the variance in the price and return.
If the yield for a dividend is more than 5% you can have a good ROI (return on investment) simply because there is no inflow and even if the stock does not change in price you still yield the dividend percent.
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. - 23222
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 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 PE ratio follows the stock rice. If the stock goes down so will the PE ratio. Many investors look for a good PE ratio what that pays good dividends to decrease the variance in the price and return.
If the yield for a dividend is more than 5% you can have a good ROI (return on investment) simply because there is no inflow and even if the stock does not change in price you still yield the dividend percent.
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. - 23222
posted by X - Men @ 1:32 AM
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