New to DGF

[stewardinlife]

(04-28-2015, 01:36 PM)EricL Wrote:

(04-28-2015, 01:00 PM)stewardinlife Wrote: I am still trying to learn, but if you could explain how to evaluate if a stock currently is overvalued or fair/undervalued (for purchase decision).

Thanks again.
Paul

That is a much longer topic than what I have time to completely respond to right now. I use FAST Graphs as my primary valuation tool. If you are serious about putting $1000 a month into investments and plan on making regular purchases, the $10 a month for a subscription would be money well spent in my opinion.

In a nutshell, I generally look at PE and dividend yield in historical terms for a company and compare them with expected growth rates. Try to buy when it is trading at or below historical valuations and at or above historical dividend yields and generally you will do well over the long run.

Thanks for the advice!

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rapidacid -- Thanks for the feedback ! I am going with Tradeking. As to accumulate cash or DRIP, would DRIP be beneficial, as I understand it is auto-reinvesting the dividends right? Based on the understanding that I may not need cash right away for at least 15 yrs. or so.