Nikkei’s Post

Despite global dividends climbing to a new record in 2023, companies spent much less buying back their own shares, according to Janus Henderson Investors’s latest annual Share Buyback study, a special supplement of its quarterly Global Dividend Index. #GlobalShares #Dividends

*Market Lessons: Understanding Dividend Potential* Yield is defined as cash dividends paid over the past four quarters, divided by share price. For many investors, it is tied with the price/earnings ratio at the top of investors’ go-to list. https://lnkd.in/eM7a7wKe

The price-to-earnings (P/E) ratio measures a company's share price relative to its earnings per share (EPS) The P/E ratio helps assess the relative value of a company's stock. It's handy for comparing a company's valuation against its historical performance, against other firms within its industry  P/E is considered as the important ratio in valuation, as it helps determine whether a stock is overvalued or undervalued There are primarily three types of P/E Ratio which investors take into consideration – forward P/E ratio, trailing P/E ratio and current P/E ratio PE have a inverse relationship between the Interest rate and cost of equity. when interest rate and company cost of equity are increasing that means PE is decreasing So basically P/E ratio helps investors determine a stock’s market value compared with the company’s earnings. PE Formula : P/E Ratio  =  Share Price ÷ Earnings Per Share #Finance #Valuation #Linkedin

*Weekend Knowledge* sharing: . Topic: #Dividend Stocks, who give growth & hold good dividend yield. . * What is #Dividend: Where companies share profit to their #shareholders & Dividend * Yield calculated: Total dividend declare / current market price . 🚦 *CRITERIA OF CHOOSING* . * #STOCKS UNDER #PSU (Public Sector Unit) * Min Dividend Yield: 4% & above * Last Year Stock Return: 80% . Important: Dividend income is a taxable income so investor come under XYZ tax slab , so dividend income was calculated on same slab only but long term capital gain under 10% tax slab.So at end of the thought investor have to earn dividend along with the stock growth both. . As an investor they invest for returns but sometimes few #dividendstocks give negative returns in stocks but give decent dividend yield & overall returns was low like (dividend – growth of stocks) for example : Hind Zinc: Total Dividend 52/- per share (Dividend Yield: 16.1%) but Last year return: Negative. (Source from Business Media) . We scan a few stocks that come under the same criteria:

Investments 101 Valuation Key metrics Why is that company trades at a greater Market value than its book value? Trading at 2x, 5x, or even 15x 20x times their book value. When a company's stock is trading at a higher price than its book value, it usually means that the market is valuing the company higher than its book value. This could be due to a number of reasons, including:    Investor confidence A higher market value can indicate that investors have more confidence in the company and its future prospects.    Expected earnings The market may be valuing the company based on its expected earnings increases.    Management The market may be valuing the company's management's ability to create value.    However, a high stock price relative to a company's assets could also indicate that the stock is overvalued. This could mean that the stock price is trading at a premium to the company's book value, and that most of the good news about the company has already been priced into the stock.    When evaluating a company's investment potential, investors should consider both book value and market value, along with other factors. BV/MV To evaluate Mkt Value of a company, you see market cap of the company and compare it with Book value i.e. added value of Equity plus Reserves & Surplus in the B/S of the company. #Valuation #Equity #FinancialMarkets #Investments

In 2023, US companies spent over $1 trillion buying back their own shares, marking the third consecutive year this has happened. EPFR offers views into both the cause (the buybacks) and potential effect (investor appetite for individual stocks) by way of its Corporate Actions and Stock Flows databases. In our latest Quants Corner "Corporate America's trillion dollar put" Vikram Srimurthy and Winston L. Chua analyze the linkages between buybacks and the affected securities and uncover how to use those insights to create actionable strategies and models. Read the full piece >> https://hubs.li/Q02tc21M0

An overly pessimistic view of a stock's value can attract new investors and discourage sellers. Investors like companies with consistent and well-supported revenue growth. I like #absolutereturninvesting Among the 280 companies trading on the Philippine Stock Exchange, this company reported revenues of greater than 50 billion pesos in the last 12 months through September 2023. Consistent and well-supported revenue growth reflects the ability to generate future profits, maintain competitiveness, and adapt to changing market conditions. The reported >50 billion pesos mark an all-time high, 1.8 times their pre-pandemic levels. The company's EBIT (earnings before interest and taxes) margin is 1.9 percentage points wider than its pre-pandemic rate. Operating income is at an all-time high, 2.1 times its pre-pandemic level. Cash and marketable securities are 2.2 times their pre-pandemic levels, and debt is just a minimal share of common equity. Consistent and well-supported revenue growth leads to increased 'free' cash flows and, ultimately, higher stock prices. The company's free cash (or cash flow from operating activities after-tax interest expense – capital expenditure) falls within the top 6% in terms of percentile excluding banks, larger than Universal Robina Corp, Wilcon Depot, Century Pacific Food, etc. Its return on invested capital (ROIC) is 3.7 times higher than the average ROIC of 174 companies with positive ROICs. The stock's price is now 50%, 204%, and 559% higher than its levels 1, 3, and 5 years ago, respectively. Interestingly, despite the substantial rise in the stock's price, the current market price appears to mirror sellers' overly pessimistic view of the company. By taking the current market price and estimating the expected growth of revenue, etc., through the free cash flow that justifies the market price (commonly referred to as 'reverse-engineering' DCF), one can determine confidently if a stock is undervalued or not. Given the current market price of the stock, sellers seem to be assuming declines in revenues of -1.2% a year in the next 3 years before falling to 46 billion pesos by Year 10 - this is overly pessimistic. In the last 40 quarters, this company's annual revenues declined once, or 1 out of 40, by just 2.3%, and growth ranged between -2.3% to 19%, 80% of the time. 20% of the time, growth exceeded 19%. The stock is undervalued and may attract new investors. I like #helpinginstitutionalinvestors who like #absolutereturninvesting Institutional investors should consider investing in this stock.

Q. What are EPS and diluted EPS? l👉 EPS is the portion of a company's profit that is allocated to every individual share of the stock. It is a term that is of much importance to investors and people who trade in the stock market. The higher the earnings per share of a company, the better is its profitability. ♦️ EPS - PAT/ TOTAL NO. O/S SHARES Diluted EPS 🔶 Diluted EPS considers what would happen if dilutive securities were exercised. Dilutive securities are securities that are not common stock but can be converted to common stock if the holder exercises that option. If converted, dilutive securities effectively increase the weighted number of shares outstanding, and this, in turn, decreases EPS, because the calculation for EPS uses a weighted number of shares in the denominator. #finance #linkedin #invest #knowledge

Imagine buying a stock at $10 per share, and watching its price rise to $12. That $2 increase represents capital appreciation—the rise in an investment's market price from its purchase price. This appreciation isn't taxed until the investment is sold, turning it into a capital gain. Capital appreciation happens when the market value of an asset surpasses its original cost. This can occur with various investments, including real estate, mutual funds, ETFs, commodities like oil or copper, and stocks. Investors aim for this growth to maximize their returns. But capital appreciation is just one piece of the investment puzzle. Investors also benefit from dividends and interest income. Dividends are cash rewards companies pay to shareholders, while interest income comes from interest-bearing accounts and bonds. Bonds, issued by governments and corporations, provide fixed interest rates. Combining capital appreciation with dividend or interest income gives the total return on an investment. For example, if your stock also pays dividends, your total return includes both the increase in stock price and the dividend payouts. In essence, capital appreciation, dividends, and interest income together shape a comprehensive investment strategy, maximizing returns and providing multiple income streams. #CapitalAppreciation #Dividend #Stock #interest #investor #cash

Visualizing Berkshire Hathaway’s Stock Portfolio (Q1 2024) https://ift.tt/e0yR4tl See this visualization first on the Voronoi app. Visualizing Berkshire Hathaway’s Portfolio as of Q1 2024 This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources. Wondering what the Oracle of Omaha has his money invested in? In this graphic, we illustrate Berkshire Hathaway’s portfolio holdings, as of Q1 2024. This data was released on May 15, 2024, and can be easily accessed via CNBC’s Berkshire Hathaway Portfolio Tracker. The value of each position listed in this graphic is based on market prices as of May 23, 2024, and will change over time. Furthermore, note that Berkshire has received SEC permission to temporarily withhold data on certain positions. This includes all of its Japanese stocks, which are reported as of June 12, 2023. It’s (almost) all Apple The data we used to create this graphic can be found in the following table. Positions worth less than $5 billion were included in “Other”. Company % of Portfolio Value (As of 05-23-2024) Apple Inc 39.7 $149.8B Bank of America 10.7 $40.6B American Express 9.7 $36.8B Coca-Cola 6.7 $25.2B Chevron 5.3 $20.0B Occidental Petroleum 4.2 $15.7B Kraft Heinz 3.1 $11.7B Moody’s 2.7 $10.2B Mitsubishi Corp 2.1 $7.8B Chubb 1.9 $7.1B Mitsui & Co 1.7 $6.4B Itochu Corporation 1.5 $5.5B DaVita 1.3 $5.0B Other 9.4 $35.9B Total 100 $377.9B From this, we can see that Berkshire’s largest position is Apple, which makes up almost 40% of the portfolio and is worth nearly $150 billion. While Warren Buffett once referred to Apple as the best business in the world, his firm actually trimmed its position by 13% in Q1 2024. Even after that cut, Berkshire still maintains a 5.1% ownership stake in Apple. Why Japanese Stocks? While most of Berkshire’s major positions are in American companies, Japanese firms make up a significant chunk. In 2020, Berkshire took positions in five Japanese trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Also known as sōgō shōsha, which translates to “general trading company”, these firms are highly diversified across major industries. According to an article from IMD, Buffett sees an attractive opportunity in Japan due to the country’s low-interest rates, among other things. Learn More About Investing From Visual Capitalist If you enjoyed this graphic, be sure to check out Visualizing the Growth of $100, by Asset Class (1970-2023). The post Visualizing Berkshire Hathaway’s Stock Portfolio (Q1 2024) appeared first on Visual Capitalist. INFO via Visual Capitalist https://ift.tt/zObg9Sl May 27, 2024 at 09:51AM