Ask any reputable investor out there how you should be spending your money and chances are that they will immediately bring you up to speed on the concept of risk-to-reward and more specifically why you should always keep a close eye on the market before making any investments. This is …
**This is a post “in-progress.” New formulas will be added, when possible, until it is completed. Dividends are a simple concept. However, there are a lot of questions regarding their calculation. This post attempts to answer most of those questions. If you’re wondering “how to calculate dividend _?”, the answer …
You’re probably overwhelmed with the number of investment choices you have available. Having options is good, but the paradox of choice is a real problem. This problem can be addressed, at least in part, by realizing that most of those options will be poor ones. Remember the Pareto principle – …
A short-selling spreadsheet will help you, as an investor, to understand your margin requirements and your potential profit at different prices. Download a short-selling spreadsheet below or follow along to make your own. This post assumes that you are familiar with the basics of short selling and the accompanying margin …
Portfolio volatility measures how much and how often your investments change in value. The change can be positive or negative. By looking at the historic volatility of a portfolio in Excel, an investor can decide how comfortable they are with the potential changes in value. Everybody likes volatility. As long …
A dividend income spreadsheet will tell you how much you need to invest in a stock, ETF, or mutual fund in order to meet a monthly cash goal. Dividends and income go hand in hand. Dividends can be reinvested, sure. But, ultimately their appeal is the income they provide. At …
Compounding is the 8th Wonder of the world. Compounding is the most powerful force in nature. You have heard all the catchy sayings in regards to compounding. They’re overused, but they’re right. Compounding is very powerful. Until you’re able to see compounding in action, though, its power won’t be completely …
Monthly dividends provide reliable and consistent income. Receiving dividend income monthly is appealing because most expenses are also due monthly. Dividend investors need to know what size of portfolio is necessary to meet their income goals. How much you need to invest to make $100 a month in dividends depends …
“What is the formula for dividends?” Dividend yield = Previous 12 months of dividends ÷ Current stock price Total dividend growth = (Current dividend amount ÷ Previous dividend amount) – 1 Dividend payout ratio = (Previous 12 months of dividends × Basic avg shares outstanding) ÷ Net profit available to …
“What is included in a competitive analysis?” A competitive (market) analysis consists of the stock you’re analyzing and its most appropriate competitors. Metrics are chosen to compare each company with the goal of understanding which is best poised for growth. Some metrics are universal, others are more industry-specific. In order …