High growth companies tend to have higher P / E ratios than slower growth companies.
Not exact matches
As a result, when applied to Canadian stocks, the PEG screen
tends to come up with older
companies seldom characterized as
high -
growth stocks.
Since wage
growth tends to occur as inflation inches
higher, investors want to own the
companies best positioned to withstand that.
Gen Y
tends to be attracted to smaller
companies because the environment is more flexible, and they are more likely to be given additional responsibilities and feel like they are part of something in
high -
growth mode.
Modern venture capital (VC) firms
tend to focus on young,
high -
growth companies — typically tech startups.
Since the industry is full of young,
high - priced start - ups, it doesn't
tend to lend itself to dividend payouts as these
companies would rather invest in their own
growth than reward investors with a dividend.
A
growth stock is a
company stock that
tends to increase in capital value rather than
high yield income.
Because of their
high prices and low yields,
growth stocks
tend to have less downside protection and more volatility than cheaper
companies.
The appeal increases when you consider that dividend -
growth companies tend to be of
higher quality and lower volatility than the broader stock market.
That may be because the underlying
companies tend to be mature and stable, or simply because paying
high prices for
growth stocks is less appealing when inflation and interest rates are elevated.
In our paper «A Case for Dividend
Growth Strategies,» we compared dividend growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some e
Growth Strategies,» we compared dividend
growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some e
growth strategies to
high - dividend - yielding strategies and concluded that dividend growers, which
tend to be
higher quality
companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some extent.
There is a downside to
growth investing: Since expectations for
growth are
high, if a
company misses a target, investors
tend to panic and its stock price will fall hard.
In the introduction to their study, the authors state: «Our tests also show that
high - dividend - payout
companies tend to experience strong, not weak, future earnings
growth.»
The appeal increases when you consider that dividend -
growth companies tend to be of
higher quality and lower volatility than the broader stock market.
When considering the profile of
companies which pay dividends, those that
tend to have initially
high yields (think +7 %), very few can be considered true dividend
growth companies.
Value stocks are
companies that
tend to have lower earnings
growth rates,
higher dividends and lower prices compared to their book value.
Companies with
high multiples
tend to contract, because it is difficult to maintain superior
growth over the long haul.
Value stocks» outperformance is even more pronounced for small and mid cap
companies, because they
tend to trade at even bigger discounts due to illiquidity and lack of analyst coverage, as well as being able to achieve
higher growth rates than larger
companies.
The low beta, or relative risk and performance to the market, will show that these stocks
tend to either perform better - or at least not as poorly - as cyclical stocks in bad times and will usually not be most investors» focal points during the boom part of the business cycle when investors are busy chasing technology stocks and
high -
growth companies.
Leave aside for a moment his efforts to merge the two firms when stockholders
tend to prefer «pure play» firms to conglomerates — it's interesting to look at how two «
growth companies» are facing a challenge raising funds at a time when the stock market is near all time
highs.
Companies with stocks classified as
growth (as opposed to value)
tend to be growing more quickly, and have
higher stock prices relative to book value and earnings.
He generally likes investing in
higher growth,
higher risk
companies, but now that he's turning 50 in a few months, he does
tend to get uncomfortable when a stock he likes takes a big hit — especially with a son and daughter currently in college.
Smaller
high -
growth companies tend to outperform their larger peers over the long - term and hugely successful ones are referred to as the five or ten — baggers which is the term used to describe stocks which have increased five to ten times in share price over a length of time, usually three, five or ten years.
The
growth companies tend to utilize
higher percentage of their earnings and hence distribute lesser dividends to the shareholders in comparison to the value
companies.
Mid-cap
companies tend to offer a balance between the
high growth (and
high risk) offered by small caps and the stability (but relatively slower
growth) of large caps.
The data would then suggest that value
companies tend to pay
higher percentage dividends than
growth companies (distribute earnings to investors, rather than retain earnings to fuel
growth).
Companies that consistently grow their dividends
tend to be
high quality with long histories of profit and
growth, strong fundamentals and stable earnings, and management teams with conviction.
Companies that consistently grow their dividends
tend to be
high quality, with strong fundamentals, long histories of profit and
growth, and generally stable earnings.