If you do some searching for dividend stocks, you may find stocks that have dividend yields of 15% or more. To a beginner investor, stocks like this may seem like a bargain. However, it is often the case that the dividends for these high yielding companies are unsustainable and only high because the price of the stock has dropped due to poor fundamentals. There are a few ways to check if a dividend is safe, and this post will teach you just that.
Would you rather receive $100 one year from now? Or would you want to receive it today? The correct answer of course is today. That's because money loses value over time due to inflation and the opportunity cost of investing it. Well, the point of DCF analysis is to forecast future free cash flows of an investment/company and then discount them back into the present in order to find out what the future money is worth today (present value). If the present value of the future free cash flows are greater than the current cost of the investment, then it is considered a good/undervalued investment.
The market has had its worst week in a while. The Dow Jones fell 12.36% in 5 days. It all started the week earlier on Friday when there was a random sell off intra-day on no news.
Since September, the Federal Reserve has been involved in Repurchase Agreements, also known as repo's. To understand why they are important, first it is important to understand exactly what they are and how they affect the market.
When it comes to the stock market, there are generally two types of participants: Investors and speculators.
These are 3 methods that investors use to include different types of assets in their portfolio: REITs, stocks and real estate investing. So, which one should you settle for? This article will examine each one, along with their advantages and drawbacks, after which you can come to a conclusion.
"The Little Book That Still Beats the Market"
Literature often succeeds in amazing us and allowing us to find out new things. Whether you were or weren’t listening to your parents’ insistence to take a book and read, you have to admit that a piece of literature can offer great lessons. “The Little Book that Still Beats the Market” is no exception. In fact, it’s considered one of the gems of finance literature, being a useful tool for those new to investing and pros alike.
Interest rates are something the market is being very attentive to, and rightfully so. The lower the interest rates, the easier it is for businesses to continue their operations, thus having a more fulfilling journey. Investing may become more difficult or much easier, depending on the percentage. It is all within the power of FOMC, or the Federal Open Market Committee.
Understanding what federal reserve interest rates are and how much influence they have on the market will help you understand how investing is affected by these changes.
ETFs vs. Mutual Funds
Unless you’re new to investing, you have probably heard about the existence of ETFs and mutual funds. They are two funding types that help investors add some diversity to their portfolio. However, beginner investors often find themselves in the middle of a hard choice-making process: which one of the two is worth investing in? What are the advantages and drawbacks of the two? Read this article to find out exactly that.