Welcome to Investment:
To acquire quality investment return, there are some steps need to be considered before undertaking the decision.
The performance of an investment is its potential
"Can you please rank the investment?!!". "If I can have the potential I will be able to rank the investment. really!"
No, no, and no. Ranking anything is my least favorite topic in the world – possibly because I spent the first 20 years of my life attempting to out-rank people to get into more prestigious schools and activities.
But I will acknowledge the differences between different types of investment, and that it’s more complex than the previous discussions of investments vs. potential.
Ranking can only work if the intrinsic risk is projected, which unlocks the potential. The performance and stability need to be viewed independent of each other, to yield potential.
Provided that you are willing to have a diverse selection of dividend-paying stocks (more than 10 with no more than 20% of your money in any individual company or any sector) and you are willing to pay attention to it so you don’t end up holding a company as it falls down the Enron drain, this strategy can work. It’s often discussed in investing books as "dividend investing" and can work very well for you, not only as a retirement plan, but as a way to build steady income. 4
Buy stocks in companies you believe in over the long haul that pay good dividends. So how does that work? Let’s say XYZ inc. is at 24.83 and has a dividend of 0.40. What that means is that every three months, for each share XYZ pays that person $0.40. So, let’s say that, you bought 1,000 shares of XYZ inc., that would have cost you just short of $25,000. This means that every three months this year, XYZ inc. is directly going to pay you $400. That would have added up to $1,600. And if that dividend holds, over ten years, the investment would pay out $16,000. Obviously, the board of directors of a company can choose to raise or lower a company’s dividends. That’s why you should choose to buy with careful consideration.
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Choose your investment wisely.
Don't just go by which stock has the highest dividend yield, which is the annual dividend divided by the current stock price. That may be caused by a low stock price, which could be the result of the company having problems, compared to the historical dividends.
o A company with a history of paying a consistently growing dividend is best, next is a company that pays a consistent but steady dividend, and next is a consistent but flat dividend. Be wary of a company that has had to cut its dividend--that doesn't mean you should avoid it completely, just look closely.
o Look at the dividend coverage ratio. Take the 12-month operation cash flow per share and divide it by the last 12-month dividend (or expected annual dividend). A company with a ratio of 1.0 or better is generally "safe".
o Go for companies that have a lower debt load than the industry average or its peers, because that offers the flexibility to borrow if needed to support operations and the dividend.
The most important task is to utilise the investment to enhance its value. it may be evident, a structured portfolio is a concept to add value to the investment. Determine the variable that need to be considered. The frequency rate of change in variables.
It is essential to set up relationship with a successful advisory service.
Choose the facilities of a flexible investment house that has compatible outlook.
Remember !!! projections is the key.
Day Trader:
forex trade of the day and strategy signal.