An Alien in America

An alien's perspective on life and everything else

Archive for June, 2014

How to – Evaluating Dividend Paying Stocks

Posted by nickxyz on June 6, 2014

Good morning,

Looking out the window today, everything around is covered in fog, visibility is down to almost nothing. Leaning back, sipping on my coffee and starting to read a bit. After a while, the fog is starting to lift, and bit by bit, things take on a clear outline.

The same can be said about the decision to invest. Initially, everything is covered in fog and it is hard to find your way around it. Don’t despair, just pick a starting point and keep at it. The fog will begin to lift!

Finding listings of dividend paying stocks assembled by someone else and sent through the elusive analysis machine already, look great, hold great promise. Yet, when it comes down to it, does the evaluation performed make sense for your goals? Is the applied logic consistent and applicable? Why did this party apply the factors and benchmarks they did?
All good, rather great, questions! Questions that need answers for you to make up your own mind whether the compiled information at hand has any merit for yourself.

In my self-education endeavors, mostly on ‘Seeking Alpha’ (great resource site!), I ran across the below article (in a series). While for me personally, some of the stock choices and their respective slotting in the ranking does not make sense for my investment strategy, I found the approach employed to develop the ranking quite interesting. And most definitely a worth while exercise for anyone learning how to evaluate stocks on their own!

Dividend Growth All Stars – Parsimony Investment Research http://seekingalpha.com/article/2238113-dividend-growth-all-stars-20-dividend-stocks-that-will-help-you-grow-your-income-part-2?ifp=0

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