To receive 10% in dollars every year and do nothing — they say this is the dream of every investor. And dividend stocks can partially cope with this, but how to choose such shares correctly. Let’s tell you today about the following criteria:
- Payout proportion: The payout proportion for offers is the sum of cash a company pays per share within the frame of profits separated by its profit per share. In other words, it tells you approximately the rate of benefit that the offers payout to shareholders. A reasonably fair payout proportion (say 60% or less) could be a great sign that profits are economical.
- Advancement history: it’s a really great sign when a company raises its profit year after year, particularly on the off chance that it can proceed to do so amid the subsidence and other troublesome financial periods, such as the COVID-19 widespread.
- Steady income and benefit development: when trying to find the finest profit stocks for long-term proprietorship, provide inclination to solidness within the companies you’re considering. Unsteady wage (up one year, down the following) and add up to salary can be signs of issues.
- Tall benefit: this can be the final one on the list. Of course, it is clear that a tall surrender is ideal to a lower one, but as it were in case the other three criteria are met. Tall profits are as solid as the trade that bolsters them is solid, so compare the profit surrender after making beyond any doubt that the trade is solid and the payouts are steady. You can screen out the various bloggers who are spelling out similar schemes. Unfortunately, many really worthwhile bloggers lack popularity, so they buy real Instagram followers to climb the charts.
It is also worth noting the investment in the Index.
The main advantage of investing in the index is diversification. You are protected from the risk of spot failures of individual companies.
There is no way in investing to work without mistakes. Everyone has failed deals. But if you invest in the index, the risk of errors is excluded. You buy all the stocks in this index, and there are 500 or more. It is not possible to make a mistake with 500 companies.
And even if several companies show negative dynamics, the index as a whole will show the overall picture of the market. And if the trend is up, then you will make a profit.
The only downside of investing in the index is that you can’t earn 400% in a year. Although individual stocks can show such good results. But my personal opinion is that it is better to slowly but surely accumulate a lot of capital in small amounts without much risk.
How to invest in the index? There are two ways to invest in the index.
- The index value is not secret, all stocks. Which are included there and their shares are in the public domain. You can just take and buy all the shares in the right shares.
- Invest through index funds. Each market has its own index funds.
4 US stocks that ultimately benefit from inflation
There are hopes on the horizon that the FED is coping with inflation and by the end of August it may go down. And the markets immediately turned to the top. NASDAQ has already risen by 20% relative to the June lows.
But there will still be a fall. It’s only a matter of time. It’s hard to guess here. But there are companies that earn more from price increases and inflation. And these companies:
American Express (AXP) — the company earns most of its money through transaction fees— sellers are charged a percentage of each transaction on the Amex card. As the prices of goods and services rise, the company receives a share from larger accounts. Business is booming. Many influential experts pay attention to this very stock. Even novice bloggers who buy Instagram followers say with confidence about the stability of this stock. And the opinion of experts is worth listening to.
Coca-Cola (KO) is a classic example of a recession-resistant business. Regardless of whether the economy is thriving or experiencing difficulties, a can of Coca-Cola is available to most people. As people drink, they will drink this coke.
Apple (AAPL) — It’s hard to call people who spend $1,400 on a fully equipped iPhone 13 Pro Max pragmatic. The apple ecosystem is “absorbing” more and more people.
Chevron (CVX) — Although the oil business is capital intensive, it tends to perform very well during periods of high inflation. Oil is the most actively traded commodity in the world — since the beginning of the year, the price has only been growing. And while the situation on oil is only up, which means companies will make good money on this.
By the way, these companies also pay good dividends, which becomes doubly pleasant to the growth of their exchange value.
