THE ANALYZING A STOCK EDITION
05 JULY 2012
Microsoft Corp.: Is It Now an Income Stock?
StockCentral subscriber Pat Landers has taken a new look at Microsoft Corp. (MSFT) and has reached the conclusion that it may be a good investment for those seeking dividends from their stock portfolio. Pat writes:
Microsoft may be a good buy for those looking for income. I say this for the following reasons:
1. Earnings per Share and Free Cash Flow (where dividends are paid from) have trended up with very similar growth rates for the past 9 years.
2. EPS growth has been 15% per annum with an R^2 of .94 for the past 9 years, meaning steady, strong and reliable growth.
3. Dividends have grown consistently at 14% a year for the past 7 years.
4. The Payout Ratio for this stock has been relatively consistent at around 26%.
What do you think about Microsoft's dividend? Download Pat's Toolkit stock study, and join the Microsoft conversation.
Interpreting the Club "Individual Valuation Units Ledger" Report
by Sean Pulrang, ICLUBcentral Customer Support Specialist
As with many articles we post on StockCentral.com, this one is the result of a recent call. A new investment club treasurer had completed a two step withdrawal, and was trying to figure out the different values on the Individual Valuation Units Ledger report.
There is lots of information on this report, so here is an overview with definitions of key terms and how some of the numbers are derived.
The columns on the report:
*
Unit Value: This only appears in the desktop accounting, and shows the unit value that was used to calculate how many units were added or subtracted for deposits or withdrawals. *
Paid in This Date: Shows change in cash from deposits and withdrawals. *
Total Paid in To Date: Shows the total of any money that the member has either paid in, or withdrawn. *
Paid In Plus Earnings: This is Total Paid in To Date, plus or minus any income, expenses, withdrawals, or year end distributions.
Read more ...
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