Stock Research
Homework Steps:
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THE KEY FACTS:
(quick snapshot... understanding your stock)
100   Stock ticker & Company Profile
110   Anatomy of a Stock - company snapshot
120   What the company does and how it makes its money
130   What Sector & Which Industry?
140   What Competitors?
150   Knowing The Share Price History
160   Knowing Number of Shares Outstanding
     
INTERNAL FACTORS:
(what the company controls)
200   Company Website
220   Annual Report (10K)
230   Latest Quarterly Report (10Q) & Other SEC Filings
240   Conference Calls
250   Earnings Guidance Provided
260   Insider Buying & Selling
270   Stock Splits
275   Secondary Offerings
280   Dividend & Yield
     
EXTERNAL FACTORS:
(what others control)
300   Analyst Ratings & Expectations
310   Major Holders
320   Major Index Membership
330   Short Position
340   News Headlines
350   Industry Events
     
KNOWING YOURSELF:
(what you can control)

400   Your Available Time
410   Age/Risk Tolerance
420   Don't Buy All At Once
430   Diversification
     
CHECK THE EXPERTS:
500   Jim Cramer's 25 Rules for Investing
510   Warren Buffett's Stock Portfolio
520   Business News - TV & Newspapers
530   Business News - Websites
540   Last check: Cramer's latest comments on MadMoneyRecap.com
     
TRADING RESOURCES:
600   Stocks 101: The Basics
610   Online Trading 101 (vs. paying a broker)
620   Anatomy Of A Stock:  The Parts
630   Mad Money Recap
640   Setting up your own free Yahoo! Finance Portfolio
650   Stock/Investing Glossary
     
ADVANCED TOPICS:
(coming soon)

700   Open Step
750   Open Step
790   Open Step
     
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800   Ongoing Weekly Homework for each of your stocks
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Next Step:                                                                                                         Last updated:      
  280  Dividend & Yield                                                                                                   Share

Reading more, beyond the bottom line...
Dividends can also be red flags to sell, sell, sell!  Here's how...  

First, what is a dividend and how is it different than a yield?

Dividend Amount - payments made by a publicly-traded company to its shareholders.  It is the portion of profits that the board of trustees for a company issues through a proclamation (usually quarterly if an ongoing dividend) for each share of stock owned.  These announcements usually follow the quarterly or annual earnings report, and also announce that the dividend amount is being increased, decreased or kept at the current level.

Dividend Yield - The dividend's yield is a simple calculation:

Dividend boosts are a GREAT indication that a company is improving - You should be able to feel more confidence in that company's ability to deliver its earnings estimates (and therefore maintain or increase in stock price level).  That is, a dividend increase most often equals SAFETY.

                                           
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Beyond the basic facts derived from understanding a dividend and yield of a stock, you need to understand why a company uses a dividend, and when they should NOT be paying out a dividend to its shareholders.

As Jim Cramer has indicated often on his show, as stocks go lower and lower, their dividend yield goes higher and higher until it probably cannot be sustainable.  If a dividend gets cut, or worse, gets eliminated by a company whose stock price has dropped dramatically, it will likely be sold off causing the stock price to fall further.  Therefore, when you see an unusually high yield on a dividend-paying stock, don't assume it will stay at that level.  That really high dividend yield should alert you with a red flag that this stock may not be able to sustain that dividend yield level, and warrants your further homework to find out more about the company and its dividend-paying history (and likelihood to continue to pay it.) 

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What you should find in this step:

 
Our Key Findings from this step (and where we found the information)...
From this step, the conclusions you should find regarding Intel's dividend are as follows, and we've also provided links to the tools we use to find out more about dividend-paying stocks and their yields:
 
 
 

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