Stock Selection

One method I use, and I know other use as well, to determine when might be a good time to buy a stock is by looking at the historical dividend yield on a company you are interested in purchasing. Each stock that pays a dividend has a historical dividend yield - an average dividend yield that it has paid out on a stock over time. The thinking is simply that if the current dividend yield on a stock is below the historical dividend yield, then the stock might be priced expensive. If the …

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I have been reading the book, Rule #1 by Phil town and am overall pretty impressed by it. At first I was very skeptical - as I leafed through the book I saw a number of references to his website which I thought was totally going to be a sell job for some other products. Turns out this was not true. His site is really just a marketing vehicle to ensure his name is out there, but I did not see any other products to purchase. The premise of the book is based on Warren Buffet's two rules of …

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If I am just looking for some of the next stocks that I would like to dig a bit deeper on, one of the places I like to start is through the use of a stock screener. There are a lot of screeners out there - some of them are free and some of them are not. The one I like to use is the Yahoo! Finance Screener. You can use the basic HTML screener, but it is not as powerful as the Javascript one. I like to use the java on - it is really quick and I have never had any problems with it. Once …

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One option for dividend investors is to purchase preferred shares of good quality organizations. The difference between preferred shares and regular shares is that preferred have some additional rights attached to it that an investor receives. The following, according to Wikipedia, are the additional rights that a preferred share owner receives from the shares: * The core right is that of preference in dividends. Before a dividend can be declared on the common shares, any dividend …

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I came across mechanical investing a number of years ago through exposure to the Motley fool . Within their books, they talked extensively about an investing strategy they called the Foolish Four. The Foolish Four was essentially a version of a strategy outlined in the book, Beating the Dowby Michael O'Higgins. The strategy works like this: 1) Of the stocks that currently make up the Dow Jones Industrial Average, sort them by dividend yield and select the 10 highest yielding ones. 2) …

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Selecting companies for investment is the best part of investing. I thoroughly enjoy the process of analyzing stocks and wanted to demonstrate the process that I go through. I am not suggesting that my method is correct - it is just the way I do it. My analysis always begins with a real quick scan of the Mergent database to ensure that the company has been consistently increasing its dividend. In GE's case, it had. I then move to some headline scans to see what the news has been talking …

Continue Reading about Stock Analysis – My Approach with GE