Step 4 continued
•Dividend payout ratio
This tells us what % of net income is paid out in the form of dividends.
A healthy % to look for is 30% to 50%
This range indicates that the company is paying out a solid portion of their earnings but keeping cash on hand to grow
REITs are required to pay out 90% of their net earnings in the form of dividends so their payout ratio’s will look very high
9
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A simple basic guide to find a good stock to invest. A thread from @HeroDividend on twitter.
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Once you have your capital, invest 50% of it into bonds or an index fund (depending on market conditions) while the other 50% to be invested on individual stocks.
However, when investing on individual stocks make sure of the ff:
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