topic Re: Stock Market question in Community Spirit

Stock Market question

debden8 — Mon, 20 Oct 2014 01:29:54 GMT

How important is the earnings yield of a stock when you are trying to assess which stock to buy?

Re: Stock Market question

debden8 — Mon, 20 Oct 2014 01:31:49 GMT

Sorry I should have signed in on my ID. not my OH's.

Re: Stock Market question

jean2579 — Mon, 20 Oct 2014 01:33:41 GMT

Sorry for some reason this stupid computer keeps diverting to my OHs' ID. Hope it is right this time.

Re: Stock Market question

kilroy_is_here — Mon, 20 Oct 2014 02:30:54 GMT

My advice is if you don't understand stocks use a qualified third party as the stock market can chew up a spit out even those that uunderstand it well

Re: Stock Market question

*mrgrizz* — Mon, 20 Oct 2014 03:03:47 GMT

my belief is that the stock market is fundamentally flawed.

every week superannuation company's receive money they MUST invest.

they purchase shares because they have to.

this artificially inflates the price.

Re: Stock Market question

lyndal1838 — Mon, 20 Oct 2014 04:22:21 GMT

Put it this way.....would you put money into a bank account at 1% when you could put it into an account at 4%?

And the reason for working out the dividends as a % is that shares are worth different amounts. A 5% dividend yield on a $5 share is a lot different to a 5% yield on a $50 share. And then you need to know what the Franking credits are. If a company gives a 30% Franking credit then your dividends are worth more as the company has already paid tax on those dividends and if your tax rate is lower than the 30% tax paid then you can claim it back.

I have some shares that were paying reasonable dividends with 30% franking credits. They have now discontinued the Franking credits so I am effectively receiving 30% less....I think they may go if the credits are not reinstated when the next dividends are declared.

And look for top quality stocks that will hold their value...most banks are a good investment.

I believe the Stock exchange now has on line tutorials...it may pay you to have a look. I was lucky enough to go to a course run by the ASX many years ago with an old boss. At the time I had not money and was not all that interested but something must have stuck as I am not a complete novice now.