Finance

  Businesses associated with constantly rising share prices and a corresponding constantly rising dividend payouts are  attractive to dividend stock investors. This is because, investors are confident that these businesses have managements that set and achieve progressively increasing total sales revenue and declining total costs.  The result, progressively rising profits for appropriation as retained profits, dividend payouts and reinvestment for growth and expansion purposes. Now, which dividend stocks will continue to grow over the next 5 years? No one can accurately predict future share prices. Share prices are influenced by speculators' often irrational decisions.  However, as an investor, you can make near accurate predictions by picking and investing in a portfolio of at least, 15 financially strong and stable high dividend paying businesses. Such businesses can be selected from the "New York Stock Exchange’s 106 Best High Dividend Stocks - Analyzed and Scored...

  Every business set up for the purpose of making profit is primarily interested in reaching and maintaining a high level of performance where revenue exceeds expenses.  It measures its performance in terms of of the price of its shares, dividends and number of issued shares. A business's dividend policy including the stability of the policy, is tied to the business's earned profits, cash flows, prospects of growth and the preferences of shareholders or investors. Shareholders or investors considering investment options would assess dividend policies and results of shareholder or investor ratios (especially the price earnings ratio) of available businesses before making an investment decision.. The dividend policy indicates the proportion of earned profits a business is willing to pay out and the regularity at which dividends are paid out.  Now note, when a company is not making stable profits, their shares will not yield regular dividends.  What is the price earning...

  It's common for an investor to do the financial analysis of the company they want to invest in. It's uncommon for an investor to do the organizational structure analysis. The latter is usually done by management for the purpose of internal decisions. The organizational structure of a company defines its business approach. The way a company approaches its business operations has a significant impact on its performance. Its performance is the primary determinant of either profitability or non-profitability. The profitability of a company is known by carrying out the financial analysis of its performance within its industry over a range of financial years.  Profitability and its consistency form the primary concern of an investor. It is the consistency in profitability that guarantees regular payment of dividends, interest on debt and return of principal. The foregoing indicates that both organizational structure and financial analyses of investment options could improve invest...

  Do you have a plan for your future? The answer is most likely a quick YES! Does that plan include a financial plan (a budget to control your spending, saving and dictate your invesments)? The answer more likely a NO!  Many make plans for the future without including a financial plan in them. Why do they ignore this all important map and means to get to their goals? It's most probably because they don't have a financial literacy.  What is financial literacy? Financial literacy is the acquisition of at least,  a basic financial knowledge that helps you to know how to fill your needs, spend responsibly and still set aside (save) a portion of your income for the future.  Why is it important to save a portion of your income? So that you can have a significant portion of capital that may be required to invest, grow and secure a lifetime financial stability Also for the sake of the protection of your investments (and your entire personal finance) against future risks...

What are marketable securities as a short term investment option? First, what are marketable securities? Many businesses prefer to invest most of their liquid resources in marketable resources instead of keeping them in idle cash. Businesses prefer holding a greater portion of their liquid resources in this form, because marketable securities can be easily and quickly bought or sold (they are highly liquid, that is, easily converted into cash) at quoted market prices daily, on securities exchanges.     Marketable securities consist basically of bonds and common stock of publicly owned companies. Investments in marketable securities yield returns in the form of interest and dividends.  When marketable securities are bought, how is the purchase price calculated? ABC Company makes a short term investment by buying 10,000 shares of the common stock of XYC Company at $0.35 per share. ABC also pays a brokerage commission of $500. The purchase price is $4,000 (10,000 x $0.3...

  What Is Inflation? Inflation reduces the purchasing power of money (purchasing power, the quantity of goods bought by an amount of money).  Inflation reduces the purchasing power of money in a growing economy by triggering rising prices of consumer goods and services. `A slow and steady rising of prices caused by an inflation rate of at about 2% is okay. But when the rate rises faster, sometimes to double digits, then it can have a negative impact on personal financial management. For instance, as a consumer, you would be time consuming to compare and determine best prices to get goods and services at a given moment. How is inflation measured? Inflation is measured by using the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCI) tools.  The Consumer Price Index tracks prices for individual goods and services which households are buying.  The Personal Consumption Expenditures, PCE, tracks changes in prices of consumer goods and services which ...