Sentences with phrase «earnings yield investor»

«I think the big move now is from active [investing] to passive, and that's good for most people,» says Joel Greenblatt, Managing Principal of Gotham Asset Management and the guru Validea's «Earnings Yield Investor» is based on.

Not exact matches

While these companies are unsurprisingly out of favour with many investors — a lot simply won't buy these companies on moral grounds — they think the sector's high yields, low correlation with market cycles and steady earnings will make investors give them another look, and then stock prices will appreciate.

There is no doubt that, based on pure, cold, logical data, stocks are the single best long - term performing asset class for disciplined investors who are not swayed by emotion, focus on earnings and dividends, and never pay too much for a stock, often as measured on a conservative beginning earnings yield relative to the Treasury bond yield basis.

Investors have long known that a high - dividend strategy has been subject to various «yield traps,» such as those stemming from temporarily high earnings, high payouts or falling stock prices.

A high FCF yield often represents a good investment opportunity, because investors would be paying a reasonable price for healthy cash earnings.

Japanese shares hit a two - month closing high on Tuesday with financials leading gains after U.S. bond yields spiked to four - year highs and as investors remained optimistic about upcoming earnings.

And even if the indicator was valid (counterfactually), the article asks readers to accept as given that earnings are properly reported here, that they will grow by nearly 50 % over the coming year, and that investors are willing to key the long - term return they require from stocks to the yield on 10 - year bonds, which has been abnormally depressed in a flight to safety.

Benchmark stock indexes were also volatile Wednesday, as investors mulled the impact of rising bond yields and disappointing earnings.

The $ 1.2 trillion high - yield debt market could face a double whammy as spreads tighten and investors use the corporate earnings season starting in the second week of October as an excuse to take even more profits.

We may see some more uncertainty ahead of earnings releases and investors will continue to react to bonds yield changes.

These conditions comprise the following: S&P 500 overvalued with the Shiller P / E (the ratio of the S&P 500 to the 10 - year average of inflation - adjusted earnings) greater than 18; overbought with the S&P 500 within 3 % of its upper Bollinger band (2 standard deviations above the 20 - period average) at daily, weekly, and monthly resolutions, more than 7 % above its 52 - week smoothing, and more than 50 % above its 4 - year low; overbullish with the 2 - week average of advisory bullishness (Investors Intelligence) greater than 52 % and bearishness below 28 %; and yields rising with the 10 - year Treasury bond yield higher than 6 - months earlier.

With IBM stock trading for just 11 times its guidance for adjusted earnings this year, investors can get a near - 4 % dividend yield, along with a long history of dividend growth, all for a bargain price.

«Starting out I was a Graham and Dodd investor, focused on low price / earnings ratios, good balance sheets and high dividend yields.

Market participants are looking forward to getting their first major reading on earnings from the biggest technology - sector players in the coming days, but for now, investor sentiment has been able to overcome what would ordinarily be a troubling rise in long - term bond yields that could signal a steeper move higher for interest rates in the near future.

While its dividend is not as high as some of the oil and gas supermajors, investors in SU do get a 2 % dividend yield, which is only a 29 % payout of earnings.

Investors were cautious after a largely weak performance on Wall Street on Thursday as some disappointing earnings reports offset strong economic data, while bond yields slid after a surprising slowdown in eurozone inflation.

Whether investors had priced in great earnings or fear arose that an inverted yield curve could pinch margins, no one knows, but the stocks clearly have underperformed on what was seemingly excellent news.

Investors were cautious after a largely weak performance on Wall Street overnight as some disappointing earnings reports offset strong economic data, while bond yields slid after a surprising slowdown in euro zone inflation.

What investors may not realize is that the correlation between interest rates and earnings yields (as well as dividend yields) has also been negative since late - 1990's.

«We think the recently lowered dividend payout is sustainable, providing investors with an attractive 6 per cent fully franked yield at current prices... we view the risks facing Telstra as more than reflected in the current stock price, trading at 12 times forward earnings per share and 5.5 times earnings before interest, tax, depreciation and amortisation,» the analysts said.

Altria's 7 % to 9 % target earnings - per - share growth rate combined with its 4 % + dividend yield gives investors expected total returns of 11 % to 13 % a year.

During earnings season, investors worried about the impact of a flattening yield curve on small cap banks, which make up roughly 25 percent of the Russell 2000, according to Bloomberg data.

In addition, the company should continue compounding earnings - per - share at 7 % to 9 % a year giving high yield investors solid growth as well.

A stock's price - earnings (P / E) ratio — its share price divided by its earnings per share — is of particular interest to a value investor, as are the price - to - sales ratio, the dividend yield, the price - to - book ratio, and the rate of sales growth.

Unusually high dividend yields can be an indicator that a company may report poor earnings — and that investors anticipate a subsequent dividend cut.

Further share repurchases or dividend reinvestments allow investors the opportunity to invest in a company with an earnings yield of 12.5 % per year.

In fact, when looking at the earnings yield relative to real bond yields — the equity risk premium (ERP)-- investors are still being well compensated for risk in many corners, we believe.

What investors have paid up for is dividend yield — 3.0 % in the case of Procter and Gamble — and stability of earnings.

CMP trades at about 14x forward earnings and offers a dividend yield of 3.6 %, which is meaningfully higher than its five year average dividend yield of 2.7 % and a great starting base for investors living off dividends in retirement.

Thus, investors who buy stocks that do not pay dividends prefer to see these companies reinvest their earnings to fund expansion and other projects which they hope will yield greater returns via rising stock price.

Eventually a spike in stock prices and / or an earnings decline caused by a recession will lower the earnings yield on stocks, but until then, nervous investors will likely continue to underperform.

An investor concentrates on the fundamental analysis of the company — its market prospects, sales growth, profitability, cash flow, debt ratio, price earnings valuations and dividend yield among other variables.

The world's most successful value investor Warren Buffet picks stocks with a low price - to - earnings ratio, low price - to - book value, and high dividend yield.

The poor value investor who got out of the stock market in the mid-90s as the earnings yield hit hit lows unseen since the late 60s — almost 25 years prior — would have sat out much of the fantastic returns generated by the dot - com bubble.

Because they are compared some investors are led to believe that the equity owners» expected return can be estimated as the sum of the earnings yield plus earnings growth.

The basic formula for the investors» expected returns is the sum of the dividend yield plus earnings growth.

That's because at today's price, long - term investors have potential to generate annual total returns between 8.3 % to 10.3 % (1.3 % yield + 7 % to 9 % annual earnings growth).

Value Investors thus select stocks with lower - than - average price - to - book or price - to - earnings ratios and / or high dividend yields.

That being said, even at today's historically attractive valuation multiples, investors should likely only expect to earn a potential total annual return of about 5.9 % to 6.9 % (1.9 % yield plus 4 % to 5 % annual earnings growth) over the next decade, far below the company's historical return rate and the returns offered by most other dividend aristocrats.

A high FCF yield often represents a good investment opportunity, because investors would be paying a reasonable price for healthy cash earnings.

Even though a P / E ratio is simply the inverse of the earnings yield, I actually consider it a (far more) dangerous tool to use for investing — particularly if it's the key / sole metric on which an investor relies.

Investors can achieve better long - term performance by combining several factors into a composite ranking that considers price to sales, price to earnings, EBITDA to enterprise value, price to free cash flow to enterprise value and shareholder yield.

An earnings yield of 6 % to 7 % (P / E ratio 15) would be the minimum that a rational investor should expect given the risk associated with investing in common stocks.

For example when the real earnings yield is at the 80th percentile, the investor would hold 80 % stocks and the balance of 20 % in cash.

For stock market investors the Earnings Yield on a common stock is the equivalent of the Cap Rate on an apartment building investment.

When investors bought during periods when stocks were inexpensive relative to sales, earnings, book value and dividend yields, they prospered handsomely.

Other investors use similar screens: some use dividend yield signals of a small group of stocks (in Canada, it is fairly easy to come up with a short list), some use price - to - earnings, price - to - book ratios etc..

The problem though is that Hershey and Brown Forman rarely get cheap or even present investors with an opportunity to buy shares at a fair price (what does it tell you when it takes a financial crisis to knock these stocks down to fair value), and the businesses are so strong that they still deliver great returns even when the shares only offer a starting earnings yield around 3 - 4 % and a dividend yield half that.

If you net out the cash, it's closer to 9x earnings, 9x times earnings for a growing, profitable, solid business — a double - digit earnings yield — tremendously attractive for the long - term value investor.

So typically, value investors select stocks with lower - than - average price - to - book or price - to - earnings ratios and / or high dividend yields.