Implications of the Declining Number of Stocks

Ten companies were expected to complete their initial public offerings this week. Normally, this would be ho-hum news unless it involved a very well-known company. [I doubt Blue Apron (APRN), which went public this morning, has enough name recognition outside of millennials to count as being well-known.] What makes this week notable is that if…

 

Dividends and Buybacks Drive Stock Returns

The return of capital by companies to shareholders is a key contributor to long-term returns. A forthcoming study by Morningstar’s Philip Straehl and Yale’s Roger Ibbotson attributes more than two-thirds of the real (inflation-adjusted) return in stock prices for the period of 1871 through 2014 to total yield. Return of capital includes both dividends and…

 

Using ETFs to Identify Quality Stocks

If one were to survey investors about what traits make a stock attractive, the top of the list would include an attractive valuation, a reasonable expectation of a price increase (particularly sooner rather than later), a sound underlying business model and good fundamentals. The first two traits are easy to identify: seek out below-average valuations…

 

Lessons Learned From Many Years of Investing

This week’s AAII Weekly Features highlight these valuable AAII articles: Lessons Learned From Many Years of Investing: Doing the math, having a good understanding of market and economic history and paying attention to valuations are key to long-term investing success. Follow the Fed, but Be Smart About It: Small-cap stocks thrive during periods of expansive…