The Economics Of Reparations

The dividend rate will need to fall – and so will your income. So we’ve established that we’d like a company to earn at least as much money as it pays out but in order to create a stable income we also need to make sure those earnings are stable. For this reason it pays to look at the payout ratio. For this reason we need to look at the company’s history of profitability. Ben Graham, the grandfather of value investing once said this: if you need to surmise value investing into only 3 words, it would be “margin of safety”. As smart investors will know, price is only one part of the value equation. Fundamentally, value investing involves buying stocks that are undervalued, fallen out-of -favor in the Market due to investor irrationality. In addition overseas markets, especially the fast growing Asian ones, run the risk of being adversely affected by a slowdown in the US market.

I think part of the rationale for the earnings growth is that the company has not been run as efficiently in the past under government ownership as it will be when publicly listed. One thing I think we all leaned as a result of the global financial crisis is the consequences of borrowing too much. But I think it’s worth it. Watching the steady stream of passive income which results from dividend investing is rewarding in more ways than one. One other point of note is the reported strong interest in the upcoming float as indicated by the high number of pre-registrations. The last watchlist (close monitoring) is the one where immediate action needs to be taken in the next trading week (within 5 days). The retail offer is now open and is expected to close at COB on 12 November. This means the investor can grow the size of his or her holding at a lower cost than if he or she had bought the shares on the open market.

So, you have maybe a 10% chance of selecting a fund that can deliver a decent return or you can choose a low cost tracker with a 100% chance of matching the index (tracking error aside). The All Ordinaries index started 2008 at 4,882 before reaching a low of 3201 in November of that year. Earnings per share is expected to grow from 11.8 cents next year to 15.1 cents in the following year. However investors will have to wait until September 2010 to receive any dividends when the company expects to pay out 3.7 cents per share. Finally the big day for prospective QR National investors has arrived. In other words, how much real interest has there been in the QR National Float and how much of the reported demand has been generated by kind stock brokers like mine. What follows are some of the highlights from the QR National prospectus.

1. To begin with, it would be suggested to see if there are any liens with the asset title or your property. There is always a lot of real-time information about stocks, including company announcements, stock analyst recommendations, kopitiam talks and even rumours. Dividend Mantra talks about his past and dividend growth investing in this podcast and it was good to listen to the hour long podcast. As you have probably deduced from those figures, earnings are expected to have significant growth over the next couple of years. Buying shares over the past couple of years has certainly been a hair-raising experience for most of us. Look back over the past 5 years and make sure the company is paying a regular dividend. I went back to my work, but I smilingly secretly applauded myself. I even bought the ring on a credit card and went into debt for the marriage expenses.