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If i wanted to invest in the stock market what should guide me more DPS; EPS; P/E; or dividend yeild?
5 Answers
- 1 decade agoFavorite Answer
investing in stock markets depend on the ability that you have in concern with TIME and AMOUNT
Short time consideration is called trading say 1 day to 1week
Medium time consideration is called medium term traders say 2week to 6 months
and above 1 year you will called INVESTOR
in all of above most advantageous situation is to be an investor
other ways are very- very risky
follow following steps to find good stock
find potential of economy
find sectors which are favorite for political policies
find company that lead the sector
then
wait for reasonable prices (corrections) it may fall within a week a month or 6 month as well
watch P/E ratio and ability of company that to raise it
always favor high dividend yield but less P/E ratio stocks
and then investment
further, if your capacity is 100
then invest just 25 in one session (correction)
you will definitely won the market
Warning - Keep away from day trading > it is only the game of BIG FISHes not like u n me
- 1 decade ago
It depends on your goals and time frame, but frankly, I do not use any of those statistics as my main criterion for picking an investment.
My main criterion if the sector. When a sector is out of favor, an investment in a company in that sector will not do well no matter how good the company is.
I look for a sector that is showing price appreciation, then look for the top 2 or three companies in the sector.
Once you have selected a sector to invest in, then the P/E can be useful. The P/E allow comparison between companies within a sector.
- Anonymous1 decade ago
Depends on your risk tolerance (high/medium/low) and your time frame etc. If you like high stakes gambling consider a stock like KING.pk Their website is http://www.kingresources.net/ and stock is about seven cents a share now. If you want great stability of principle buy large cap financial institutions or government savings bonds.
Remember: Invest at your own risk. Many market factors influence the price of a stock. There are "market makers" who must try to influence markets to their benefit while staying within the law. There are institutions that must answer monthly to their customers. And there are short and long options players as well as long holders. Also there is public opinion, the number of shares outstanding,etc.
- Anonymous1 decade ago
There is no one particular key to finding an investment, but I do admit that P/E to me is very important. If the P/E is too high > 20 for example, I will probably reject it. Too much risk.
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