The S&P 500 is one of the widely followed U.S. benchmark equity indices. This index is a better barometer of the U.S. markets than the Dow Jones Industrial Average or the NASDAQ indices. Here are some interesting facts about S&P 500: The index was first published in 1957. The 500 companies in the index are …
Stocks that have low dividend yields but grow the yield consistently each year perform better in the long run than stocks with high dividend yields as discussed in this article. Total return of lower dividend stocks in the long run will be higher than the total return of higher dividend stocks.For example, the telecom sector …
Continue reading ‘Lower, Growing Dividend Yield is Better Than Just Higher Dividend Yield’ »
Investing in the equity markets of Middle East and North Africa (MENA) involves high political risks since most of the countries are not democratic(with the exception of Israel) and are run by monarchies, dictators, etc. As a result, economic growth is stagnant and social ills such as corruption, high unemployment, lack of transparency, nepotism, etc.others are …
Continue reading ‘Impact of Political Risks on MENA Equity Markets’ »
I wrote an article last week discussing about the strategy of investing in stocks during a crisis for great returns. This post is a follow up to that article but takes on the benefits of investing in equities for the very long-term. Very long-term can be defined as a time period measured in decades. …
Continue reading ‘Equity Investing for the Very Long Term Will Yield Spectacular Returns’ »
Reinvestment of dividends can enhance the return of an equity investment. Instead of simply focusing on price returns only investors should focus on the total return of an investment which includes price return plus dividend reinvestment return. Over the past decade, UK’s FTSE 100 has consistently beaten the S&P 500. The FTSE 100 has had …