Monday, August 26, 2019

Div Tip #18: Know your metrics.

Image of Dividend Tip Jar.
Dividend Tip Jar

Once you’ve worked through your initial screens (Div Tip #17) you’ll need to dig further into your investment targets to make selections.  Dividend Farmers cue off Ben Graham when exploring the fundamentals of a target firm.

Length of dividend history, market cap size, position relative to competitors, price-to-book value, average earnings, and debt-to-equity are among the metrics of choice when assessing a firm’s potential earnings strength and stability relative to the risk it bears.  Investing, not speculating, is the name of the game.

Being unfamiliar with Ben’s value benchmarks requires following Div Tip #9 and learning about them.  Additional resources and links to resources to help you master the metrics of Dividend Farming are readily available.  Dividend Farming focuses on the data and analysis rather than the emotion.  Don’t relegate your investment decisions to emotion.  Know your metrics.  Reduce your risk.  Improve the odds of success.  Sleep soundly as you farm your way to a better future.  

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