How An Investor Can Use A Financial App To Select The Best Stocks?
- Author Yaw Boach
- Published November 18, 2018
- Word count 604
The stock market offers many opportunities. You can earn a return on your excess cash by investing in the right stocks instead of just leaving the money in a checking account. Many people including Warren Buffet made lots of money investing in stocks. Can you select the best stock for your portfolio by using a simple financial app like Boachsoft Plata? The answer is a definite yes.
Dividends are the periodic sums of money that are paid to shareholders. It may be paid quarterly, semiannually or annually. Studies have proven that shares with dividend payments that grow year after year out-perform the other shares. They consistently provide shareholders with good returns and are associated with less risk which is paradoxical because the lower the risk the lower the expected return.
To determine dividend growth rate just when you are ready to purchase stock using a financial app like Boachsoft Plata first just use an online tool like yahoo finance to search for the dividends that have been paid over a few years. Record them.
Switch on your phone or tablet and start a financial app like Boachsoft Plata. Choose the Time Value of Money Calculator. Enter your first dividend in the present value field. This should be the earliest dividend paid out that you wrote. Skip the annual interest rate field. Enter zero in the payment field. The number of periods is the number of consecutive dividends you have written down minus one. So if you write down 5 dividends paid out down your number of periods would be five minus 1 which is four. Enter the value in the periods field. Skip the 'Compounded/yr' field. Enter the latest dividend in the Future Value field. Precede it with a negative sign. It is also called a minus sign (-). At the bottom you would see a drop down list box. The value should be equal to the time interval at which the dividends were paid. If you recorded annual dividends leave it as annual. If you recorded quarterly dividends then select quarterly.
Finally press the Annual Interest button. The value obtained is the growth rate of your dividend.
Calculate dividend growth rates for as many stocks as you can using the technique described. Pick the stock with the best dividend growth rate. Combining this with more information like the analysis of the prospects of a company you can choose the best stock and optimize returns.
Next we are going to assess the value of a particular stock using an imprecise method. In other words it is just an estimate. Select the stock valuation calculator in your financial app. In Boachsoft Plata it is called the valuation calculator. You would need the average cost of capital. Use your search engine to search for average cost of capital. In the Dividend field enter the latest dividend. Enter the average cost of capital in the Required Return field. If you have already calculated the dividend growth rate then enter it in the Growth Rate field otherwise just enter 0. Press the button labeled Value of Asset to determine the value of your stock. Compare the value of stock to the share price. It should be close. If the value is less than the share price then this particular stock is overpriced. Do this for each of the stocks you intend to purchase.
Purchase stocks with good dividend growth rates that aren't overpriced.
These are just some of the ways you can use a financial app like Boachsoft Plata to optimize your stock purchases. If you consistently do this you will over time earn higher returns than people who don't.
Download a good financial app by clicking any of the links below.http://articlebiz.com
There are no posted comments.
- Blockchain strategies and approaches
- Why is it worth having your savings in a different currency?
- Getting To Know How Forex Trading Can Change Your Life
- The Importance Of Opening A Forex Trading Demo Account
- Interest in cash is falling - what's the next banknote?
- Should You Prefer Trading Commodities Using Futures Contracts Or Options?
- Why USD is a Safe Haven During the Crisis
- What you should Know about Ubanker Nigeria
- What I Discovered About Forex Trading
- The One Skill Every Forex Trader Should Master To Succeed And How To Master It.
- Factors that inhibit the popularity of Forex in numerous countries
- USEFUL TIPS: HOW TO CHOOSE A FOREX BROKER
- How to find the best Forex signals?
- What type of regulation to expect in finance in 2020
- Top forex trading tips
- Third world countries where trading is most popular
- Forex Reviews 2020 by Top Forex Brokers Reviews
- 4 things to look for before investing in a stock
- What Forex Brokerages Should Look For in a Forex Trading Platform
- Does the license of a brokerage determine how worthwhile it is for traders?
- How to review a Forex Broker
- How to Use Oil Prices As A Signal in Currency Exchange
- Should We Trade With Brokers With Lowest Spreads?
- 5 Lowest Spread Forex Brokers Review
- The Strategies from the Genus’ of Investing: Investing style is a mater of finding your personality type and risk tolerance
- Market Numbers Through 2017... Not Quite as Impressive as You Think
- Investing In Gold Smart Strategy
- Long Term Investing
- Variation Of Metatrader Platforms