Good stocks

Stocks are now the darlings of every investor. Everyone today wants to buy stocks and later sell them to earn handsome profits. The question rises does every one makes good money in the stock trading. Well the answer is NO! A person may be able to make early good results but in the end he/she may prove to be a big looser. So the main motive now is to find out that the good stocks that does not carry away the hard-earned money, just like that. To figure out the good stock is not a difficult task after all. All you need is to have some general knowledge about evaluation of the new offer documents and the yearly report. These two includes the required information about the stock that a person needs to make his/her decision easy about the investment in the stock.

  • New offer document.

    Through new offer document, the reason for offering a definite stock is stated. The reason may be removing some loan amount, refinancing a project, growth and development of the company and any other reason. By carefully reading the offer document a person will find it easy to make his/her investment decision regarding the stock much clearer. That is to invest or not to invest and how much to invest.

  • Yearly report.

    • The yearly report has the information regarding the companys profit and loss throughout the year. It also consists of the financial position of the company, its order book, loan amount (if taken), and decisions of the board meetings. The yearly report helps in bringing out the decision whether to invest in that specific stock or not to invest.

    Both the methods stated above helps in figuring out the good stocks for investment purpose. Lets just point out the main features of a good stock that can promise to give better returns in near future to the person.

    Features of a good stock.

    A number of features of good stock that can help you take decision regarding the buying of a definite stock.

    These features are as follows.

    1. A good stock has a growth and development purpose on its new offer document. And not the motive to take off all the debts or payment of loans.
    2. The yearly report shows an upward trend of both the pricing of the stocks, output, returns on investment, profit after tax and various other variables.
    3. A good stock has a solid reason to run forward in the future. The reason may be news regarding a take over, joint venture, collaboration etc, which proves in favor of the stock.
    4. A good stock mostly has good volumes in the stock exchange during the trading period. Many people at one time may identify a reasonably good stock to invest.
    5. A good stock has a good market reputation. And on taking suggestions people advice such stock.
    6. A good stock shows a definite upward movement comparing the yearly price graph of the definite stock.
    7. A good stock proves profitable while taking it on the long-term investment basis.
    8. A good stock does not surely moves upward on daily basis, but the overall movement on long term basis proves it to be more beneficial.
    9. A good stock pays a handsome dividend either on quarterly, bi-quarterly or yearly basis.
    10. The annual return from the company is more in percentage as compare to return from the banks.

    After we have stated various features of a good stock, its time to tell you about some good stocks and the basis of comparison of stocks.

    Good stocks and its comparison.

    A good stock can be compared on the basis of its annual return from the past many years. Say, ten years, twenty years and so on. The second parameter can be the current yield, that is the return from investment during the current financial year. The various good stocks, along with the annual return take it from 1957 and its current yield is as follows.

  • Altria has an annual return on average basis to be 19.8% with the current yield of 4.5%.
  • Abbot Labs, which is denoted as ABT on the Newyork stock exchange, has an annual return on an average basis to be 16.5% with the current yield of 2.6%.
  • Bristol-Myers denoted as BMY in the NYSE has an annual return of 16.4% with the current yield of 5%.
  • The medicinal giant Pfizer denoted as PFE in the NYSE has an annual return of 16.1% with the current yield of 1.1%.
  • Coca-Cola the worlds favorite drink denoted as KO in the NYSE has an annual return of 15.9% and the current yield is 2.7%.

    • As per the comparison, the above data states that the Altria has the highest annual return of 19.8% from the past many years. Abbot Labs and Bristol-Myers then follow it. As far as the current yield is concerned Bristol-Myers gives 5% which is highest, later followed by Altria at 4.5% and then by Coca-Cola at 2.7%.

    Conclusion.

    In the end, the good stock has quite distinctive features that are stated above. Identifying these features helps in making easy the decision regarding the buying of a definite stock. We have also identified five good stocks, which gives good annual return and the best current yield possible. So, start reading and understanding the annual reports and new offer documents, take wise investments and make good money. take wise investments and make good money.

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