What Are High Yield Stocks?
Income stocks are also called income stocks and high-yield stocks. They can pay higher-yield stocks. The business is stable and there is little opportunity for expansion. Therefore, their net profits are converted into higher-yield dividends.
Income shares
- It should be pointed out that the company issuing the earnings shares is likely to be due to its strong profitability, which is the so-called
- The characteristics of income stocks are better stability.
- In the evaluation of income stocks, the company's financial analysis is a very important part. In addition, the stability of the company can also be judged by the stock level. Experts believe that a type of income stock should be rated at least B + or higher; the dividend divided by the earnings per share ratio is better than 60%, which means that even if there is a moderate decline in earnings, the company has Sufficient profits ensure the payment of dividends. Furthermore, low payout ratios mean that dividends can grow faster than earnings.
- The evaluation method can be found in the following table: