Recent Articles
How to Calculate Average Dividend Yield
What We Have Learned It is very important when investing to not only evaluate a company against others in its sector or industry, but also against itself. In previous articles, we have discussed the dividend payout ratio, free cash flow, Z-Score and Return on Invested Capital (ROIC). All of these metrics are used as a [...]
Saving Too Much For Retirement?
I recently came across an old article from the New York Times that offers us a view of retirement planning that we don’t often hear…are we saving too much? According to them, the financial industry, with its ostensibly objective online calculators, overstates how much money someone will need in retirement. Some, in fact, contend that financial [...]
A Case For Higher Commodity Prices
Could we see even higher commoditiy prices in the future? The following is a case presented to support why we should continue to see an upward investment trend in commodities and how this positive long-term trend is due largely to the supply and demand imbalances that persist in industries that produce commodities. In addition, the market [...]
Calculating Return On Invested Capital
What is Return On Invested Capital? Return on Invested Capital (ROIC) in basic terms is the amount of profit that a company earns for every $1.00 of capital invested into the business. Some analysts may substitute “growth rate” for ROIC in some instances. How Do I calculate ROIC? Return on invested capital is calculated by dividing [...]
