07-08-2014, 02:23 AM
I can spend several hours analyzing a company before I invest. Once I think I know how they operate and earn their money, it doesn't take much time after that.
One method I use is to watch how far the stock is moving vs. the market. If the market overall, and I've found the S&P 500 and DJIA pretty much track each other, is up/down 1/4% and a company on my watchlist is moving up/down a couple percent, then I dig into why. Most of the time it's just an over-reaction to something by the traders (earnings beat or miss, perhaps) but sometimes it's a material change in the company. Let's face it, most dividend growth companies are pretty well-known names if you've been around the market for any length of time. You shouldn't be jumping in and out of a stock position for a couple quarters of earnings surprises or disappointments.
One method I use is to watch how far the stock is moving vs. the market. If the market overall, and I've found the S&P 500 and DJIA pretty much track each other, is up/down 1/4% and a company on my watchlist is moving up/down a couple percent, then I dig into why. Most of the time it's just an over-reaction to something by the traders (earnings beat or miss, perhaps) but sometimes it's a material change in the company. Let's face it, most dividend growth companies are pretty well-known names if you've been around the market for any length of time. You shouldn't be jumping in and out of a stock position for a couple quarters of earnings surprises or disappointments.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan