Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Monday, July 23, 2012

Very Basics of Good Company

What companies interest Remnant the most ..?
1. Earnings stability (or predictability)
2. Dividends ( or growth )
In summary, companies that are profitable and rewards its shareholders with growth or dividends

Two very basic criteria of good companies:
1). Companies whose earnings are positively stable or predictable...
It's wonderful to have companies making profits quarter after quarter and year after year
growing and adding to its cash pile
2). Companies who will use its profits/ cash to grow/expand its business ( capital expenditures or capex ) and whenever not possible, reward its shareholders with the cash as dividend..
It's great to know that the company that you've invested in is on a growth trajectory.
Yet when that is not possible, it's nice to know that they will be generous enough to pass it on to their shareholders ...

1 comment:

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