Return on Investment Definition – Also referred to as the ROI, it is the calculated performance (or ratio) of the cost associated to purchasing an asset. An easy way to remember the ratio is the percentage gain or loss on any type of investment that is made. The return on investment can be calculated for [...]
What does P/E ratio mean? The P/E ratio is short for price-to-earnings ratio and represents the valuation of a company’s current share price to its earnings per share. This financial ratio is one of the most widely used numbers to analyze stocks by analysts and investors in the market today. Most of the time the [...]
The dividend payout ratio (DPR) of a stock represents the percentage of earnings paid to shareholders in dividends. Commonly referred to as the payout ratio, this calculation gives investors an idea of how well earnings can support the dividends paid. There are some investors who believe this is a useless ratio that has been made [...]
There are quality dividend paying stocks and then there are other stocks that simply pay a dividend but make for horrible investments. Finding the best dividend stocks to buy now can be a big challenge for those not familiar with this type of investment strategy. The only requirement that most investors look for in a [...]
The price earning ratio (P/E ratio) is a financial calculation that compares a stocks current share price to the earnings per share. One of the most widely used financial ratios in the stock market, the P/E can help investors understand the value of a company. It can also be used to compare different stocks with [...]
Selecting stocks that pay high dividends can come from good and bad companies, depending on the criteria used. Successful income growth investors carefully screen their stock picks, avoiding any market hype or distractions. These savvy investors avoid chasing the highest yielding stocks that are risky and instead focus on the long term stability of the [...]