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? asked in Business & FinanceInvesting · 1 decade ago

If i wanted to invest in the stock market what should guide me more DPS; EPS; P/E; or dividend yeild?

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  • 1 decade ago
    Favorite 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.

  • Anonymous
    1 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.

  • Anonymous
    1 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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  • 1 decade ago

    Go to Investopedia.com

    Source(s): Investopedia.com
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