It’s best to always look for companies where the dividends
come from free cash flow. Companies that pay out less than 50% of its free cash
flow in dividends in a full year represent a good rule of thumb. If a company
pays out more than 100%, then the company is most likely dipping into the
balance sheet or relying on outside sources to fund the dividend.
Wednesday, December 16, 2015
Financial Thought of the Day December 16, 2015: Dividends Have to Come From Somewhere
Tuesday, December 15, 2015
Financial Thought of the Day December 15, 2015: Think Long-Term When Investing in the Stock Market
When investing in the stock market, think long-term. That
means thinking in terms of barriers to entry, competitive advantages and demand
of product. No one can predict the daily swings of the stock market. However, a
company’s stock will reward shareholders over the long-term if it sits behind a
wide moat against competitors and sells products that people will buy. I will
preach this until I am blue in the face.
Monday, December 14, 2015
Financial Thought of the Day December 14, 2015: Save for Harsh Times
Remember to save as much as you can for as long as you can.
You never know when you will need the savings or for how long.
Friday, December 11, 2015
Financial Thought of the Day December 11, 2015: Emergency Fund
It pays to have enough cash to have on hand to pay your
normal bills for a period of one year in case of job loss.
Thursday, December 10, 2015
Financial Thought of the Day December 10, 2015: Keep A Cool Head
When dealing with financial decisions always keep a cool
head…you may regret it later. Buying a car or furniture without thinking about
it could prove detrimental to your financial health and product satisfaction.
Thursday, July 2, 2015
Financial Thought of the Day July 2, 2015: Invest in Yourself
The best way to accumulate wealth is to spend less than you
earn. The best way to get in that position is through acquiring marketable
skills. Investing in yourself is as important as investing a financial
instrument.
Wednesday, July 1, 2015
Financial Thought of the Day July 1, 2015: Transparency
When seeking a financial advisor, always research their
background. If they have been in trouble for breach of ethics, don’t hire them.
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