It’s easy to understand a positive dividend triangle, but how to explain a weak one? This episode was inspired by a webinar attendee who asked what to do with a Dividend Triangle showing a negative EPS. Should you sell on downward trends, red flags, and suspicious numbers? Let’s find answers!
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You’ll Learn
- We can’t start this episode without a reminder of what is the dividend triangle, which is positive 5-year revenue, EPS, and dividend growth.
- Mike explains how he uses the Dividend Triangle as a first set of filters to select dividend growers.
- However, there are times when a good company may show a weaker dividend triangle and this is what we’ll look at today. First, what should we do if one metric goes down?
- Revenue can fluctuate from a quarter to another. How should investors analyse it?
- Vero asks the question that inspired this episode. What does a negative EPS growth mean on the dividend triangle?
- Some companies show a negative EPS growth but remain strong. It is the case for Brookfield Corporation (BN) and TD Bank (TD).
- What does it mean when dividend growth slows down? Is this a sell sign?
- The payout ratio is another metric that can help assess the dividend growth health. Mike explains how using the right one will add analysis context for investors.
- In the end, when does a weak triangle become a sell sign? In short, you need to be able why numbers are going down…
- Would Mike buy a stock with a weak dividend triangle? Is this a buying opportunity?
Related Content
Mike shared the bear case of Brookfield Corporation (BN) on The Moose on the Loose podcast.
Investors’ main struggle remains how or when to buy and sell. Here are four tools (and a bonus!) to do it without regrets!
More details about the Dividend Triangle are included in the article below.
Quick Note on the Upcoming Webinar
After this webinar, you should be able to:
- Make the difference between price anchoring and sound valuation.
- Fight your fear of investing now and losing money.
- Get the deal you are looking for.
- Buy dividend stocks in an overvalued market without getting burned.
- The webinar is on Thursday, March 21st at 1pm ET.
- It is 100% free, no strings attached.
- The presentation is about 50 minutes.
- I’ll stay for one hour to answer all your questions.
- I’ll provide the handouts to all live attendees.
- A free replay link will be sent to all registered attendees.
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This podcast episode has been provided by Dividend Stocks Rock.
I didnt get notice of this until today.
Thks