CLASSES TO GO Compound Growth Rates and Yield Jim Thomas National Volunteer.

Slides:



Advertisements
Similar presentations
Seminar Number 287 Balancing Taxable and Non-Taxable Portfolios Matthew K. Willms, President QUANT IX SOFTWARE, Inc. Developers of the BetterInvesting.
Advertisements

Seminar 219 Concentrated Positions in Your Portfolio – The Elephant in the Room The Elephant in the Room Matt Willms, QUANT IX SOFTWARE.
CLASSES TO GO! Stock Buy Backs Bite Back! James Hurt OKI Tri-State Chapter of Better Investing.
Sandra F. Barlow BIVA Board Director Classes-to-Go! 3C Creating a Watch List Sandra F. Barlow BIVA Board Director.
Classes-To-Go Watch List for Clubs or Individuals Sensible Method to Stay in the Market Sandra F. Barlow BIVA Board Director.
Classes-To-Go Education Program for Clubs Keeping Clubs Energized, Focused and Relevant Irina Clements, Associate Director, BIVA Board.
Classes-To-Go! 4C Debt to Equity Toolkit 6 Row 2C in Section 2 Jim Hurt Director, Central Iowa Chapter.
CLASSES TO GO! Company Debt: A Shot in the Arm or a Prescription for Disaster? Ann Cuneaz.
CLASSES TO GO! Investing In Biotech: High Risk Or High Reward? Cy Lynch, Manifest Investing.
CLASSES TO GO! Small Cap Pros and Cons Arlene Skaggs BIVA Board Director.
All About Mutual Funds Allen Holdsworth BIVA Director Illowa Buy States Chapter Nov. 11, 2014.
Conway First Investment Club Carleton H. Brown, President.
The Value of Common Stocks. Topics Covered  How Common Stocks are Traded  How To Value Common Stock  Capitalization Rates  Stock Prices and EPS 
Dividends and Earnings. Investors may make money on their investments through dividends and by selling stocks for a profit.
Classes-To-Go Stock Buybacks Bite Back James Hurt OKI Tri-State Chapter of BetterInvesting.
Successful Long-Term Investing: The Journey The Journey October 15, 2011 Presented by: Mark Robertson Founder & Managing Partner, Manifest Investing
Seminar – 1C New Features in the Online SSG BetterInvesting’s Online Tools Suzi Artzberger Director of Information Services, BetterInvesting.
CLASSES TO GO! 2B or Not 2B: Return on Equity Ronald Bruyn, MBA BIVAB Associate Director.
Value of Bonds and Common Stocks
The Value of Common Stocks Chapter 4. Topics Covered  How Common Stocks are Traded  How To Value Common Stock  Capitalization Rates  Stock Prices.
1 Portfolio Management Using PERT NAIC CompuFest 2004 Ralph Seger, CFA Please turn off cell phones.
Classes-To-Go Taking a Closer Look at Management Section 2A of the Stock Selection Guide Gretchen Hurt Director, BIVA Board.
Classes-To-Go BetterInvesting Membership What are the benefits??? Kim Butcher BIVA Associate Director.
Smashing More BI Myths Ken Kavula, Chairman BetterInvesting Volunteer Advisory Board Classes To GO! 6B.
CLASSES TO GO! Advantages of a Bear Market Allen Holdsworth BIVA Board Director.
Classes-To-Go What is a P/E Ratio and Why Should I Care? Allen Holdsworth Illowa Buy States Chapter BIVA Board Director.
Smashing BI Myths Cy Lynch Classes-To-Go. BETTERINVESTING NATIONAL CONVENTION Disclaimer The information in this presentation is for educational purposes.
PE (Price-Earnings) Ratios “Why are there so many different ones?” Gary Ball Director, BetterInvesting Classes-To-Go! 2A.
Seminar Number 110 Introduction to BetterInvesting Portfolio Manager Software Matt Willms, President, QUANT IX SOFTWARE, Inc. Developers of BetterInvesting.
CLASSES TO GO Capitalization Gretchen Hurt BIVA Board Director.
CLASSES TO GO! Setting Up a Club Education Program Diane Amendt BIVA Board Director.
Seminar Number Understanding the Lingo of Mutual Funds Presenters Name.
Classes-To-Go! 3B What Is Yield On The SSG? And Why Should I Look At It? Diane Amendt BIVA Board Director.
Selecting the Low Price September 2010 Presented by Jackie Koski Assistant Director, OKI Tri-State Chapter VP of Education, Cincinnati Model Investment.
Investment Vocabulary. Stock Market  A market in which the public trades stock that someone already owns; the buying and selling of stock.
Classes –To-Go! 4B Value Line: More than a Stock Page Sandra F. Barlow BIVA Board Director.
Chapter 4 Principles of Corporate Finance Eighth Edition Value of Bond and Common Stocks Slides by Matthew Will Copyright © 2006 by The McGraw-Hill Companies,
Course of Study for Beginning Investors Class 1 WHY INVEST IN STOCKS? Part 2 Carol Crosta Associate Director, BIVA Board.
Classes-To-Go! 3A Company Size and Expectations on the SSG Mary Enright Sioux Empire Chapter Director.
Irina Clements Partner, MICNOVA Director, DC Regional Chapter Stericycle – Stock Proposal.
0 Mark November 7, 2012 PORTFOLIO DESIGN & MANAGEMENT Dashboard Diagnostics (November 2012) MICNOVA:
Mike Torbenson Puget Sound Chapter
164 - PEG What, Where, Why and How
233 How to Review Your Portfolio – Part 2
Markets & Limits & Stops, OMY !!!
Mike Torbenson Puget Sound Chapter
Screening & Stock Ideas from the BetterInvesting Website
Are D/FW Companies Up, Straight and Parallel?
Mike Torbenson Puget Sound Chapter
Research: Beyond the Basics
BetterInvesting’s Online Tools CoreSSG Tutorial
MICNOVA: Online Club Accounting
Taking a Closer Look at Management
Research: Beyond the Basics
What’s New in Online Tools
BetterInvesting’s Online Tools CoreSSG Tutorial
2B or Not 2B: Return on Equity
Portfolio Tools in CoreSSG and SSGPlus
CinMIC June 20, 2009 WHAT’S NEW IN Toolkit 6 ? 1 1.
Advantages of a Bear Market
How to Start & Run An Investment Club
Watch List for Clubs or Individuals
WHY INVEST IN STOCKS? Part 2
Stock Comparison Guide Tutorial
Education Program for Clubs
Smashing BI Myths Cy Lynch Classes-To-Go.
BetterInvesting Membership What are the benefits???
Stock Buybacks Bite Back
< PLACE LOGO HERE >
When to sell ? From BI Investment Club Operations Handbook
Presentation transcript:

CLASSES TO GO Compound Growth Rates and Yield Jim Thomas National Volunteer

BETTERINVESTING NATIONAL CONVENTION Disclaimer The information in this presentation is for educational purposes only and is not intended to be a recommendation to purchase or sell any of the stocks, mutual funds, or other securities that may be referenced. The securities of companies referenced or featured in the seminar materials are for illustrative purposes only and are not to be considered endorsed or recommended for purchase or sale by BetterInvesting™ National Association of Investors Corporation (“BI”) or the BetterInvesting Volunteer Advisory Board, its volunteer advisory board (“BIVA”). The views expressed are those of the instructors, commentators, guests and participants, as the case may be, and do not necessarily represent those of BetterInvesting™ or BIVA. Investors should conduct their own review and analysis of any company of interest before making an investment decision. Securities discussed may be held by the instructors in their own personal portfolios or in those of their clients. BI presenters and volunteers are held to a strict code of conduct that precludes benefiting financially from educational presentations or public activities via any BetterInvesting programs, events and/or educational sessions in which they participate. Any violation is strictly prohibited and should be reported to the President of BetterInvesting or the Manager of Volunteer Relations.

BETTERINVESTING NATIONAL CONVENTION NAIC Principles Invest Regularly Reinvest All Earnings Invest in Quality Growth Companies Diversify to Reduce Risk

BETTERINVESTING NATIONAL CONVENTION What are “Earnings” Proceeds from companies you sell Earnings produced by companies you own, which are either … –Paid to you as dividends, or … –Retained by the company and reinvested your behalf

BETTERINVESTING NATIONAL CONVENTION Why Reinvest Earnings? Compound Growth! Money (earnings) not invested doesn’t grow Reinvesting means taking money produced by an investment and investing that money too (not necessarily in the same thing!)

BETTERINVESTING NATIONAL CONVENTION Example $100 investment with 6% price growth and 4% dividend yield –Investment worth $106 after one year –Plus $4 received as dividends Reinvesting the $4 allows $110 to grow (rather than just $106)

BETTERINVESTING NATIONAL CONVENTION Example Results Over Time $100 investment 6% price growth 4% dividend yield Dividends reinvested vs. putting them “in a mattress” Years D i v i d e n d s ReinvestedMattress 5$161$156 10$259$232 15$418$333 20$673$468 25$1,083$649 30$1,745$891 40$4,526$1,648 50$11,739$3,003

What about the SSG? How do Dividends, Reinvesting and Compound Growth relate to the SSG?

BETTERINVESTING NATIONAL CONVENTION Percent Payout Annual dividend … as a percentage of annual earnings $0.15 dividend (paid during a year) $1.00 earnings (during that year) 15% payout (i.e., 15% of earnings were paid as dividends)

BETTERINVESTING NATIONAL CONVENTION SSG Section 3G: % Payout Annual dividend (F) as a percentage of annual earnings (C), or F ÷ C.

BETTERINVESTING NATIONAL CONVENTION Dividend Yield Annual dividend … as a percentage of dollars invested to produce that dividend $3 dividend (paid over a year) $200 invested 1.5% annual dividend yield (i.e., $3 ÷ $200 = 1.5%)

BETTERINVESTING NATIONAL CONVENTION SSG Section 3H: % High Yield Annual dividend (F) as a percentage of annual low price (B), or F ÷ B.

BETTERINVESTING NATIONAL CONVENTION SSG Section 5A: Present Yield Dividend expected to be paid next year … as a percentage of the current stock price.

BETTERINVESTING NATIONAL CONVENTION SSG Section 5B: Avg. % Payout This is a judgment item; you may want to change it. How does it compare with the average from section 3G?

BETTERINVESTING NATIONAL CONVENTION SSG Section 5C: Compound Annual Total Return Potential Avg. Annual Yield … combined with … Potential Annual Price Appreciation.

BETTERINVESTING NATIONAL CONVENTION SSG Section 5C: Compound Annual Total Return The computer calculates compound return. Your job is to provide the judgments that flow into this calculation.

BETTERINVESTING NATIONAL CONVENTION Make A Difference In Someone’s Life If you have benefited from BETTERINVESTING, Please pick up some BETTERINVESTING materials and introduce others to this opportunity.