A Dividend Approach to Judging the Value of Stocks


This week’s AAII Weekly Digest highlights these
“must-read” AAII articles:


The Effect of Dividend Changes on Expected Cash FlowsThe Effect of Dividend Changes on Expected Cash Flows

Dividend announcements and changes are perceived as signaling information about a company’s financial prospects. However, new research points to a link between dividend announcements and future changes in cash flow volatility.

A Dividend Approach to Judging the Value of Stocks

John Bajkowski

Investors are always seeking undervalued stocks to add to their portfolios while pruning those that are overvalued. Value investors are drawn to stocks with high yields. Dividend yield analysis can help determine whether a stock is undervalued, fairly valued or overvalued.


What You Need to Know About Bond Yields to Determine Your ReturnsWhat You Need to Know About Bond Yields to Determine Your Returns

Advisers and the media talk about yield on different investment products, without necessarily clarifying what the word ‘yield’ actually means. This article seeks to provide a simplified understanding of the meaning of the different yields that are stated on bonds.


Who Gets a Dividend Payment After a Trade?

When you buy a dividend-paying stock in relation to key dividend-cycle dates will determine whether or not you will receive the dividend payment.

Our Member Question for this week is:

Do you purposefully avoid “sin” stocks—publicly traded companies either involved in or associated with an activity that is considered to be unethical or immoral such as alcohol, tobacco, gambling and/or weapons manufacturers—when making investments?


Vote to answer this week’s Special Question: If you do avoid “sin sectors,” why? Is it on moral grounds, because of a perceived weakness as an investment class or something else?

Last Week’s Results:

Compared to how you felt at the start of the year, how optimistic or pessimistic are you about your investments over the coming 12 months?

AAII Survey: Recent Market Volatility Has Done Little to Change Investors’ Outlook

Has the recent market volatility changed investors’ outlooks for their investments for the next 12 months? Last week’s reader survey question and special question delve into this topic.

AAII Investor Classroom: Investing in Bonds

Think of the bond market as a mystery wrapped in an enigma? You are not alone. But this AAII classroom—a member exclusive—pulls back the curtain so that you can analyze individual bonds with confidence.




The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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