April 18, 2007 –
Well I am very please with how well I have been doing. Not sure it will last. Thought I would at least document how I decided on most of my picks. I am really into dividends. It seems to have found a way of doing a valuation based on the dividend. I also think I see dividends as a way to know the company wants to share with the stock holders. What I look for is companys with low or no debt (safe and can pay dividend when hurting) and good amount of cash. Good dividend or 3 - 5% or more. Must have postive cash flows. I like them to be mid to small cap also (room to grow). What I end up with is dividends to use to purchase new ideas (do not reinvest) and growth with a safety factor. I think it is the best of both worlds low to mid risk with high to mid returns. Why do I think that? Well when you are paying a good dividend the market drops that makes the diviidend look even better. When the market drops people look for safety in dividends and bring it back up again. The volativity is lower. Maybe I have just been lucky....Enough for today. [more]
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