Investing doesn’t have to be complicated and includes dozens of metrics. Focusing on trends for three metrics will explain most of a company’s story and results and cover all angles of your buying and selling process.
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You’ll Learn
- For the benefit of our first-time listeners, let’s first quickly define the dividend triangle.
- Why should investors follow the 5-year revenue trend first?
- What becomes a red flag when looking at the revenue trend? You must find an explanation for any significant movements.
- Earnings per share tell us more about a business’s profit. How does a growing trend protect investors?
- Why is hectic or decreasing EPS a warning sign?
- What does the dividend growth trend tell investors? Does it assess the company’s health properly?
- When does the 5-year dividend growth become a concern? How is BCE an excellent example of one in trouble?
- What do you do when you see these red flags? Are there any other metrics to include in your analysis?
- We share examples of companies showing almost perfect dividend triangles: Mastercard, Visa, Costco, Microsoft, Dollorama, Alimentation Couche-Tard, and National Bank, and we also offer a word of caution.
- Are there any specific cases in which the dividend triangle does not work? If so, what do you use instead?
- To end the episode, we quickly summarize how the dividend triangle covers most angles.
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Mike has released a small The Moose on the Loose episode about Capital Power (CPX.TO) bad results. Listen to it below.
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This podcast episode has been provided by Dividend Stocks Rock.
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