Dividends Are the Key to Wealth*
In this Master Class, Kelley Wright, managing editor of Investment Quality Trends, will cover how to use dividends and dividend yields to identify high-quality stocks and know when they offer good value. He will show how the dividend yield gives clear guidance when to buy, sell, or hold a stock.
There are two paths to profit in the stock market: capital appreciation and dividends. Of the two paths, the only one with any certainty is the cash dividend. Additionally, the cash dividend tells the investor everything he or she needs to know about a company.
1) The company is profitable. Dividends are only payable if there are profits to pay them from.
2) A rising dividend trend tells you the company's profits are increasing. No Board of Directors will vote a dividend increase if there aren't sufficient profits to support the dividend increase.
3) A rising dividend trend is the single best predictor for a rising stock price.
4) Dividends provide a floor of safety beneath a stock's share price.
Not all dividend paying companies are created equally, however. High-quality companies have lower downside risk and higher upside potential. The key is having a qualitative filter that allows you to identify the high-quality companies from just the run-of-the-mill. In this class Kelley Wright will explain the criteria for Select Blue Chips, his newsletter's qualitative filter that has been used since 1966 to identify high-quality companies.
High-quality companies tend to trade between two repetitive areas of dividend yield: A low-price/high-yield area, and a high-price/low-yield area. In this class he will discuss how to use these repetitive areas of dividend yield to make buy, sell and hold decisions.
High-quality companies have high-quality earnings. The keys to understanding earnings quality is buried in the balance sheet and income statements. Understanding how to extrapolate economic data from accounting data allows the investor to identify earnings quality, and therefore dividend strength and safety. Kelley Wright will cover this and more in this not-to-be-missed class.
$109 per person if purchased by September 5; $139 after September 5. Includes refreshments.