Investing 102

[CRCRFT78]

Thank you for the explanation on Annaly Capital Management. I agree I will have to learn more before jumping into something like this.

[Bucketlist2012]

Originally Posted by CRCRFT78

Thank you for the explanation on Annaly Capital Management. I agree I will have to learn more before jumping into something like this.

Amen.... Some of these are really small plays in my Big Mix, so I am not trying to make a killing with the asset..It is more of a balance to my steady eddies..

Remember to really have a blended mix..Sure some of it seems boring, but no one should load up on these assets without doing the homework...

That is why I am usually not mentioning specific assets..i don't want it to bite someone, and then bite me...

[toy71camaro]

ok...

So.. I am making a "list" per say, of "data" i am documenting for each stock i am reviewing, so i can compare the numbers and see which way i want to go, etc.

With that being said, i have a silly (to me) math question, that i just cant seem to find the answer to. Or i am overlooking it, or something.

I want to calculate the "Growth" of a dividend over a certain time frame... Say, for example, in 2007 the dividend was $0.25 and now, in 2012 (5 yrs) its $0.38. What was the dividend growth percent (not looking for the ACTUAL value, but the math to get it. lol).

Or perhaps this is on a Schwab chart that i am overlooking? or somewhere else?

Also, similar to Dividend growth, i want to see share price growth. Now i think this one is on the default "Summary" charge on Schwab. if you hit the 5yr mark on the "Quote Details" company performance chart, it says "Price Change: +10.00(13%). Is that indicating my stocks price has gone up simply 13% over that 5 yr mark?

thanks fella's...

and heck, i was at near the top of my class in math back in school.

[Woody]

Originally Posted by toy71camaro

ok...

So.. I am making a "list" per say, of "data" i am documenting for each stock i am reviewing, so i can compare the numbers and see which way i want to go, etc.

With that being said, i have a silly (to me) math question, that i just cant seem to find the answer to. Or i am overlooking it, or something.

I want to calculate the "Growth" of a dividend over a certain time frame... Say, for example, in 2007 the dividend was $0.25 and now, in 2012 (5 yrs) its $0.38. What was the dividend growth percent (not looking for the ACTUAL value, but the math to get it. lol).

Or perhaps this is on a Schwab chart that i am overlooking? or somewhere else?

Also, similar to Dividend growth, i want to see share price growth. Now i think this one is on the default "Summary" charge on Schwab. if you hit the 5yr mark on the "Quote Details" company performance chart, it says "Price Change: +10.00(13%). Is that indicating my stocks price has gone up simply 13% over that 5 yr mark?

thanks fella's...

and heck, i was at near the top of my class in math back in school.

To calculate the percentage change in your example you would subtract $0.25 from $0.38 which is a change of $0.13. Then divide the $0.13 by $0.25. You should come up with a percentage change of 52%.

I believe you are correct on the Schwab question? One way to check would be to pull up historical prices from five years ago and then calculate the % change as in the example above. Google finance has historical prices going back many years.

[carbuff]

Originally Posted by toy71camaro

I want to calculate the "Growth" of a dividend over a certain time frame... Say, for example, in 2007 the dividend was $0.25 and now, in 2012 (5 yrs) its $0.38. What was the dividend growth percent (not looking for the ACTUAL value, but the math to get it. lol).

If I understand your question, I think you want to see the annual dividend growth percentage for the last 4 years (2007 - 2011). That should be:

(nTH root of (new div / old div) - 1) * 100%

where 'n' is the number of years.

Using the above numbers:

((4th root of (.38 / .25)) - 1) * 100% =

(4th root of (1.52)) - 1 * 100% =

(1.110352 - 1) * 100% =

0.110352 * 100% =

11.0352%

You can use the Scientific version of the Windows calculator to derive the nth root of a number. I don't know how to put the radical symbol in here, hopefully you can figure that out. Maybe this will help.

http://en.wikipedia.org/wiki/Nth_root

Hope that helps!

[toy71camaro]

thanks guys!

I also think i found the info on Schwab's website, under the "fundamentals" section. It has the 1/3/5 yr growths.

[toy71camaro]

Looks like the "Albert Sale" is over... ED and MO back on the rise today. lol

[bdahlg68]

ahhh, the joys of diversity. I own MCD which is down today pretty significantly for MCD. Not too worried as I've been to MCD in EU and in Asia and those stores are plenty busy. I'm literally praying MCD stays down here for a few more days as I'm expecting a new wave of employees looking for work. I also own REIT's that took a bit of a hit today. This sort of volatility is more expected in these names.

On the other hand I also own FUN and STD which thoroughly made up for MCD and the REIT's. FUN and STD were up 3% and 4% each today. STD I just picked some up yesterday and will be eyeing some additions shortly.