Your holdings’ companies have reported their earnings, but what should you do with them? We share a simple process for determining what to focus on, avoiding traps, and investing with conviction. Become your own analyst!
You’ll Learn
- We’ve repeatedly mentioned quarterly reviewing our portfolios on the show. But can you remind us why it is crucial for DIY investors?
- The press release contains most of the information investors need for their quarterly review. Where can we find it?
- The press release itself contains financial highlights, business highlights, and financial statements. What does each section tell investors, and what should they focus on?
- Does it happen that the press release isn’t enough? If so, what other sources of information should we look for?
- In other words, you want to assess the dividend triangle’s health.
- Sometimes, the EPS is misleading. In which cases does it happen, and what metric should we replace it with?
- Once investors look at the overall dividend triangle trends, we want to ensure the dividend is safe. Of course, dividend growth is a good indicator, but the payout ratio and cash from operations can tell us more.
- So far, we have mainly focused on numbers and trends. The next step is the most important one. It is to make sure that your investment thesis and the numbers match. How do you do that?
- What are the main pitfalls to avoid when doing our quarterly review?
- Do you always go “all-in” in this process? Give us an example of a company reviewed quickly this quarter and another that needed more digging?
- We end the episode with a summary of how to read earnings like a pro.
Related Content
Here is the Canadian Banks Earnings Review for Q3.
Let’s look back at what happened and what’s ahead. Despite all the uncertainties of 2024, many companies are at their all-time highs. Should we expect more resilience from the markets or a correction?
The Year so Far and What’s Going to Happen this Fall [Podcast]
The Best Dividends to Your Inbox!
Download our Dividend Rock Star List now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails, including our latest podcast episode!
Follow Mike, The Dividend Guy, on:
Have Ideas?
If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an email.
This podcast episode has been provided by Dividend Stocks Rock.
Leave a Reply