Eudividend Investing System
Eudividend investing system is the tool for income seeking investors with long term time horizon to get deeper knowledge of the key principles of dividend investing. It makes easier for investors to construct and run a dividend stock portfolio.
We focus on dividend paying companies. If a company pays dividends and increases them consistently, chances are high that it has a stable business model and is well run.
As long term investors, we focus on a dividend growth because growing an income stream makes a stock more valuable over time.
When investing, we encourage our clients to follow these main principles.
- Consider the business cycle and market conditions.
- Diversify by industries, depending on a business cycle.
- Invest in high quality stocks, industry leaders.
- Take account of the company’s dividend growth practice.
- Invest regularly, start small.
- Pay attention to the size of a company. Majority of companies in your portfolio should be the large ones.
After considering a business cycle and choosing industries to invest in, move on to pick individual stocks. Here we use Eudividend stock valuation system. It helps to analyze the company performance over time and consists of the following two parts.
- The past experience of a company is evaluated within an industry context. Consider how Dividends, Sales and Earnings per Share change over time and consider ratios such as Dividend Yield, Payout Ratio, Debt/Equity and others. Search for the companies which are amongst the best within its industry.
- The future growth potential of a company is evaluated using information from the company website and other sources.
Stock Price Analysis
The stock price is projected using a historical Price – to – Earnings ratio of a stock to evaluate what kind of the price growth could be expected in the future in addition to a dividend income.
All the information about the past, present and future of a company activity is used to assess whether the stock is suitable for an investment. An investor should evaluate what is the level of risk of investing in the company versus the return that could be expected from such an investment.
A Stock Screen of our website is designed to facilitate this stock analysis process.