Investing In Dividends For Dummies. Carrel Lawrence

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       ✓ Read the quarterly earnings reports of the companies you’re thinking of investing in. Every public company is legally obligated to file these reports with the U.S. Securities and Exchange Commission (SEC) – the federal regulator of Wall Street.

       ✓ Research companies on the Internet. You can usually find plenty of information on the company’s website, in online financial publications, and on sites such as Yahoo! Finance and Google Finance. Use your favorite search engine to search for the company by name.

       ✓ Check out the competition online, too. Which company is leading the pack; what’s it doing that the others aren’t?

       ✓ Read reports written by stock analysts at investment banks. These analysts spend a lot of time each quarter investigating whether companies are performing up to their own expectations.

       ✓ Subscribe to and read financial publications online or off. Sorry, but not everything is available for free on the Internet – you usually have to pay for the best information, whether you get it online or in print.

       ✓ Check out what other investors have to say. Many investors maintain blogs that provide useful insights and can give you some sense of investor sentiment.

       ✓ The Dogs of the Dow: In 1991, Michael O’Higgins proposed an investment strategy called The Dogs of the Dow based on the fact that a dividend stock’s yield rises whenever its share price drops. Proponents of this theory believe that the components of the Dow Jones Industrial Average with the highest dividend yields have the greatest potential for capital appreciation in the coming year.

       ✓ The Geraldine Weiss Approach: Geraldine Weiss, editor of Investment Quality Trends (www.iqtrends.com), is a leading expert on dividend investing who promotes buying high-yield blue-chip stocks. The overall strategy is to buy high and sell low – that is, buy when dividend yields are at the historic highs and sell when the dividend yields hit historic lows. Sticking with blue-chips helps avoid financially troubled companies.

       ✓ Relative Dividend Yield: Developed by money manager Anthony Spare, this approach rates stocks by comparing a company’s dividend yield to that of the average yield of the S&P 500. In his book Relative Dividend Yield: Common Stock Investing for Income and Appreciation, 2nd Edition (Wiley), Spare recommends giving careful consideration to stocks with a dividend yield that’s more than double the average on the S&P 500.

       ✓ Dividend Achievers: Dividend Achievers identifies companies that have an outstanding track record for increasing dividend payments every year. To make it on the U.S. Broad Dividend Achievers Index, U.S. companies must have at least ten consecutive years of increasing regular dividends, be listed on the NYSE or NASDAQ, and have a minimum average daily cash volume of $500,000.

       ✓ Education and research: Knowledge is power, and by reading this book, you’re already engaged in the pursuit of the requisite insight and know-how.

       ✓ Dollar cost averaging: Dollar cost averaging is investing a fixed amount of money at regular intervals (such as monthly) toward the purchase of a particular investment. With dollar cost averaging, sometimes you pay more for the investment and sometimes less. This strategy reduces your chance of paying a premium for a large number of shares and then losing a huge amount of money when the price drops.

       ✓ Diversification: Don’t put all of your golden goose eggs in one basket by investing heavily in any one company, sector, or type of investment. By diversifying your portfolio with stocks, bonds, and cash, you not only spread the wealth but also lower your risk profile.

       ✓ Strategic timing: No, I’m not recommending that you try to time the market. What I do recommend is that you match your investment strategy to your time frame. Be aware of how many years you have before you need this money. The less time you have, the more conservative your investments should be. As you get older, consider allocating a higher percentage of your portfolio to safer investments, such as bonds, to protect your capital.

       ✓ Direct: You may be СКАЧАТЬ