Sentences with phrase «growth companies tend»

High growth companies tend to have higher P / E ratios than slower growth companies.
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.
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 appeal increases when you consider that dividend - growth companies tend to be of higher quality and lower volatility than the broader stock market.
The appeal increases when you consider that dividend - growth companies tend to be of higher quality and lower volatility than the broader stock market.
A growth company tends to have very profitable reinvestment opportunities for its own retained earnings.

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.
They examined 51 computer companies with outsized CEOs in the period from 1997 to 2003 and found some commonalities: they tended to be at the top or the bottom of the pack in terms of revenue growth, profits and other metrics.
Since wage growth tends to occur as inflation inches higher, investors want to own the companies best positioned to withstand that.
The move into the refrigerated section is part of a broad push by consumer packaged food companies to get their products into the perimeter of the supermarket, which has experienced more growth as consumers move away from the processed and packaged fare that tends to live in the center of the store.
Management tends to focus on growth, adding employees and building the company rapidly, but this can end up slowing things down over time.
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.
Forward P / E ratios take into account expected earnings growth over the next 12 months, which means that they tend to be lower than the P / E ratio for growing companies.
Indeed, tax incentives tend to flow overwhelmingly to big, established companies, rather than to the local start - ups that research has shown are a more significant source of job growth.
Modern venture capital (VC) firms tend to focus on young, high - growth companies — typically tech startups.
Small companies tend to grow more quickly than large companies (the «size premium»), so expect Berkshire growth to be slower moving forward.
Small - cap companies usually focus on one or two growth prospects and maximize those opportunities, whereas small - cap stocks tend to be centered on products involving innovative technologies.
The fund seeks to track a growth - style index of medium - sized companies, whose stocks tend to be more volatile than large - company stocks.
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.
While extensive research shows that value stocks tend to outperform growth companies over the long term, the opposite occurred in 2007.
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.
While in the past online and offline retailers tended to be mortal enemies, in China the rapid growth of e-commerce and mobile shopping is encouraging tie - ups like the Alibaba - Suning deal as Internet companies teamed with old - school retailers try to leverage each others» strengths to introduce new, mobile - tech - enabled products and services.
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.
When companies assess competitive advantages, they tend to look at their position in the marketplace versus the competition, a product or service that presumably offers greater quality and reliability, capacity for growth and, of course, a cost - effective operation.
Neuroscience companies that started in the»80s tended to focus on particular neurotrophic or growth factors, he says, and were little better than shots in the dark.
Research shows that investments in human capital improve organizational performance — including team effectiveness, employee retention, and innovation — in both the private and public sectors.1 In other words, companies that attract and develop strong employees by prioritizing recruiting, investing in professional growth opportunities, and building positive workplace cultures tend to have greater efficiency and better outcomes.2
Larger, established companies tend to issue regular dividends as they seek to maximize shareholder wealth in ways aside from supernormal growth.
Behaviorally, people may ignore these potentially profitable, yet also perhaps more boring companies, and instead veer toward potentially more exciting, yet also less stable, growth and lottery - like stocks (for example, because the more exciting stocks tend to be featured in colorful news stories).
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 eGrowth 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 egrowth 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
So in general terms, at times of artificially low interest rates, growth companies — which have more future earnings than they have current earnings — tend to be more attractive to investors than value companies.
Independent firms tend to offer fewer funds or segregated account models than the banks do, and stick to a particular investing style, such as value investing (buying good companies at bargain bin prices) or growth - at - a-reasonable-price (GARP).
The companies that pay regular dividends tend to be ones that have reached a stage of plateau as far as their growth is concerned.
Growth - income funds, for example, tend to invest in Blue Chip companies that pay steady dividends but may also provide capital gains through share price appreciation.
How has a company's historical rate of growth tended to relate to its intrinsic value?
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.
This contrasts with mature companies, such as utility companies, which tend to report stable earnings with little to no growth.
The stock fundamentals tends to show that the company is under a good management; ability to sustain growth in different aspect and to keep gearing ratio low when times are hard for brick n mortar while making money.
At the same time, through their domestic focus, smaller companies tend to benefit from domestic growth policies and will be less impacted by future changes in global trade arrangements.»
Companies with high multiples tend to contract, because it is difficult to maintain superior growth over the long haul.
To clarify even further, two companies generating the same earnings growth will tend to produce similar long - term returns for their shareholders.
He tended to favor small growth companies that he saw as being undervalued by the market.
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.
As a minimum level, I tend to favor companies paying at least a 2 % yield, but I make regular exceptions if I find that the company shows a strong dividend growth potential.
I could have taken the angle of encouraging consumerism in the name of funding our dividends, but the wonderful thing about many of the companies that we dividend growth investors tend to invest in see secular demand for their products and services.
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.
Growth stocks tend to be linked to companies with strong recent performance or exciting prospects for the future.
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