What does “Doing your due diligence” really means? What should you do to avoid buying a stock that does not suit your investment plan?
Today, we guide you through the due diligence process with the 5 Most Important Points before buying.
We have 6 Top Stock ideas for you! Download your Top Stocks for 2022 book excerpt here.
- Understanding a business model goes beyond knowing what they do. It’s also about understanding when a company will thrive and when it could take a hit.
- Why focusing on the worst-case scenarios rather than the optimist ones will prevent you from impulsive moves. Never forget about the downsides of a company!
- How can the investors’ relation website help and which information to look for? Then, how to link what you’ve found with the dividend triangle.
- Why the 10-year data can be misleading and how the 5-year one is a better choice.
- Before buying, you need to understand the different financial metrics and know when they are useful. Which metrics should always be part of your due diligence?
- The importance of consistency and a clear investment process.
- How to prevent yourself from getting too excited by a stock.
- How do we know we have completed our due diligence?
Payout ratios can be a good start in your investigation of a company’s dividend safety. But which one should you use? What’s a good payout ratio and what does it tell you exactly? This is what you’ll find in this episode.
Having a buy list is crucial. Here is how to create the best one using must-have metrics and the tools to assess the future of a company.
The Best Dividends to Your Inbox!
Download our Top Stocks for 2022 booklet now and do not miss out on the good stuff! Receive our Portfolio Workbook and weekly emails including our latest podcast episode!
Follow Mike, The Dividend Guy, on:
If you have ideas for guests, topics for The Dividend Guy Blog podcast, or simply to say hello, then shoot me an email.
This podcast episode has been provided by Dividend Stocks Rock.