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Growing Dividends – Does Debt-to-equity Ratio and Operating Cashflow Matter?
By StocksCafe  •  February 10, 2016
I believe there are many investors like me who love to invest in companies that pay dividends. Naturally, we hope that companies we invest in would have growing dividends. So, the question is "How can we differentiate companies that will have growing dividends from others?"In an attempt to find an answer to this question, I will perform a series of analyses in this and upcoming articles. Today, I will focus on two metrics that are commonly thought to be useful in forecasting if a company is capable of distributing the same or higher dividends in future. They are Debt-to-equity Ratio and Operating Cashflow (referred to as DER and OC from hereon). In particular, I would like to see how DER and OC in year X influences the dividend per share (DPS) in year X+1. Debt-to-equity Ratio's influence in numbers Based on the data I have collected from the ......
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By StocksCafe
StocksCafe was created originally as a personal project to help me make better investment decisions. I decided to share it because it grew to a project that I believe many can benefit from. Feel free to let me know how it can improve to better assist you ...
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