The Weekly Nibble: Dividends, Forecasting and the “3”s
Here are some of the more interesting articles that have appeared in the Motley Fool Singapore’s website over the past week. Let’s take a look at them.
1. On dividends
If you would like to know how to choose dividend stocks to invest in, check out this article here. There are three criteria that you have to look into and they are 1) the stock’s dividend yield; 2) the dividend payout ratio; and 3) the stock’s free cash flow. For a more in-depth analysis on the payout ratio itself, you can take a look at the article here.
2. On forecasting
There are lots of uncertainties in the world now. In fact, uncertainty will always be around, no matter the time. On this note, forecasting what would happen next can be an exercise in futility. In investing, we should focus on what matters – the fundamentals of the business we are going to invest in. Take a look at at the two articles here and here for an in-depth discussion on the topic.
3. The “3”s
My Foolish colleague, Stanley Lim, recently looked at three reasons why a listed company would be privatised and three mistakes investors often commit in the stock market.