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Equity Income
Do high yielding shares really perform better than low yielding shares? What about investing in companies with high payout ratios? And what is the difference between cash, profit and earnings anyway? In this series relating to equity income, we review investment research to try to provide you with answers to some of these questions
Analysing Profit, Earnings and Dividends
How do profit, earnings and dividends differ from one another? In this session we look at the information they provide us with, and also how they are used in formulating some key investor ratios.
Pay-out Ratios and Investment Returns
UK companies have been shown to pay out a greater proportion of profits than other companies. Yet what is the impact of this for company profit growth and investment returns? In this section we look at the research and draw some conclusions.
The Importance of Cash
Fund managers seem to spend a lot of time talking about cash. But what exactly are they referring to and how does this differ from profit? We look at the importance of cash and what is meant by ‘quality of earnings’
The Long Run Impact of Dividend Reinvesting
To what extent do dividends contribute to the overall long term return of equities? The Barclays Equity Gilt study provides an interesting analysis of how equities have performed since 1899. We review their report to explore how annualised returns have differed when income is paid out and when it is reinvested.
Risks and Returns of High and Low Yield Shares
Many advisers recommend investors buy equity income funds which invest into companies paying a higher than average dividend yield. But does the research support the out or under performance of these types of shares over time? In this session we look at the research data, and reasons for the interesting results.