When using Mike Higgs list, review the ones that have above average historical dividend yields. Check into what stock analysts’ say about the stock. There could be a lot of reasons why a stock dividend’s yield is high by historical levels. If the stock is in financial trouble, forget about it. However, the stock could just be a good buy. Remember, that you only really lose on a stock if it goes bankrupt or into a long term decline. Otherwise, buying a stock when it is at a low point can make you great long term gains.
For you to make good money on a stock, you must not overpay for it. It doesn’t matte what sort of list you get your stocks from, you should not overpay. One way of deciding if you are overpaying is to compare the company’s dividend yield to its long term dividend yield. This is not the only method, but it is a good one. This is what Mike’s list is all about.
Before purchasing a stock, you need to get some sort of stock analyst report. Just looking at the stock calls of Buy, Hold or Sell does not tell you all you need to know. You need also to know why these calls are being made and you can find this out only by looking at someone analysis of the stock. I get reports from my broker. If you cannot do this, if may be wise to pay for a report.
You can purchase research reports from MPL Communications Ltd at http://www.adviceforinvestors.com/. Since stocks cost a lot of money, it might be wise to see an analysis a stock you want to buy before you do your purchase. See Mike Higgs’ site at http://www.dividendgrowth.org/Report.htm.
Always get independent advice on investing from at least 2 sources.
This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.
No comments:
Post a Comment