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Company valuation is the process of determining the appropriate price - or "fair value" - of a company's stock, as opposed to the "market price" at which it is currently trading on the stock exchange. For a DGI investor, valuation serves as an investment safety net. As Warren Buffett says: "Price is what you pay; value is what you get." We look for excellent companies trading below their true value in order to create a "margin of safety" (a highly recommended book). Reading F

Welcome to the comprehensive glossary for DGI investors. The Dividend Growth Investing (DGI) strategy relies on precise fundamental analysis and the ability to read financial statements. It is an investment approach focused on high-quality companies that not only pay regular dividends but also consistently increase the amount distributed to shareholders each year. For the DGI investor, a stock is not merely a chart moving up and down, but a "cash cow" that grows, fattens up,

Financial ratios are mathematical metrics derived by combining data from the three financial statements previously reviewed (balance sheet, income statement, and cash flow statement). These ratios enable "apples-to-apples" comparisons - such as evaluating a large company against a small one or comparing a company to its industry average. Without financial ratios, a figure like "a profit of one billion dollars" is meaningless unless one knows the amount of capital invested to

This is the report where "Cash is King." While an income statement may include accounting estimates and "paper profits," the cash flow statement shows exactly how many dollars entered and left the coffers during the period. For a DGI investor, this is the most important report to master when learning to read financial statements. After all, dividends are paid in cash, not in "accounting profit." Table of Contents: Working capital Cash flow from operating activities Cash flow

The income statement is the company's "documentary film." It presents economic activity over a specific period (a quarter or a year) and answers a simple question: Did the company make a profit or incur a loss? For investors, this is a crucial report when analyzing financial statements; they examine the "top line" (sales) and the "bottom line" (net profit) to determine whether there is genuine growth that justifies investing in the business. Table of Contents: Sales Cost of s

The balance sheet is a financial statement that presents a company's financial position at a specific point in time (usually the end of a quarter or the end of the year). Unlike the profit and loss statement, which shows what happened "over time," the balance sheet is a "snapshot" of what the company owns and what it owes. The balance sheet must always balance; this is the foundation of reading financial statements and of the world of accounting: Assets = Liabilities + Shareh

The data, figures, prices, yields, valuation multiples, forecasts, and other financial information appearing in the site's articles and posts are accurate - to the best of the author's knowledge - as of the time the content was written or updated. Financial data may change frequently due to market fluctuations, corporate announcements, economic shifts, forecast revisions, and various other factors. Therefore, the data and figures presented in the articles should be viewed as

AI tools are evolving and improving with each passing day; it is hard to keep pace, and it often feels like no matter what we do, we cannot match the wave of innovation sweeping the globe. Some might find this disheartening, while others recognize that this change is inevitable and accept that there is little to be done about it. AI tools will continue to flood our world with their innovations. I think the direction this is all heading is already clear: taking decision-making

Generating additional income is a dream many of us harbor throughout our lives. We often think about ways to boost our earnings - perhaps by launching a small venture - to bring in extra cash and improve our financial balance. The challenge, however, lies in the execution: it is often difficult to get started, stay consistent, and meet the goals we set for ourselves. Many people recognize the need for extra income. As our quality of life improves, our desires expand, and the

Crafting a successful investment thesis is one of the most important tools for standing out in the capital markets. The capital market is an arena where individuals, companies, and financial institutions navigate a wide array of investment options. Yet, beyond the financial aspect, the capital market presents a unique challenge: internal competition. It is a "competitive" wealth-generating environment where we are essentially competing against ourselves - against our own mind

Stock investing is a popular way to build stable savings over time, especially for Dividend Growth Investing (DGI) investors. During the second quarter of the year, my portfolio saw relatively quiet activity - with no major new investments - as I focused on holding cash and letting the passage of time drive the portfolio’s growth. I did, however, purchase shares in additional semiconductor companies - firms that are primary beneficiaries of the current boom, even as they navi

The year began tumultuously with a conflict involving Iran, the US, and Israel, triggering a crisis in the oil markets and economic uncertainty. These events had a significant impact on both the global and regional economies. Naturally, the effects of the conflict also influenced my investment portfolio, making this an excellent time to provide a portfolio update for the first quarter of the year. Historically, the Iran-Iraq War - which lasted from 1980 to 1988 - was one of t

Living a life of meaning, freedom, and free choice is an aspiration shared by many of us. Most of us dream of financial independence - the ability to choose our own path without being tethered to a workplace or a rigid schedule. For many, the dream of financial independence looks like lounging in a hammock on a stunning beach in Thailand, cocktail in hand. In reality, achieving financial independence requires hard work. It demands long hours and investment. Passive income is

The data, figures, prices, yields, valuation multiples, forecasts, and other financial information appearing in the site's articles and posts are accurate - to the best of the author's knowledge - as of the time the content was written or updated. Financial and market data are subject to frequent change due to market fluctuations, corporate announcements, economic shifts, forecast revisions, and various other factors. Therefore, the data and figures presented in the articles

Investing in dividend-growth stocks (DGI) is like a long journey toward the summit of financial independence. The path is paved with the promise of passive income that grows over the years, peace of mind, and the ability to step away from work and retire early. Yet, like any journey, this one entails obstacles and setbacks. I often see investors - even experienced ones - falling into the same traps that can hinder their progress or even derail them from the path to financial

The data, figures, prices, yields, valuation multiples, forecasts, and other financial information appearing in the site's articles and posts are accurate - to the best of the author's knowledge - as of the time the content was written or updated. Financial and market data are subject to frequent change due to market fluctuations, corporate announcements, economic shifts, forecast revisions, and various other factors. Therefore, the data and figures presented in the articles

When we hear the word "dividends", our minds immediately jump to "easy money," "passive income," and a "gift from the company." And indeed, to a large extent, that is exactly what it feels like - one day, without you having taken any active steps, the money simply lands in your bank or investment account. Magic? Perhaps. "Free money"? That is where things get a bit more complex; it is important to understand the "darker" side of dividends from an accounting perspective, while

Myths tend to spring up around any investment strategy, especially those gaining popularity. They sprout like weeds - spreading rapidly, distorting the big picture, and potentially misleading unsuspecting investors who are tempted to invest too quickly, without an objective assessment of reality. Dividend Growth Investing (DGI) is no exception. I often encounter misconceptions and beliefs - seemingly straight out of ancient fairy tales - that hinder people from seeing the tru

The world of capital market investing is diverse and rich. Of course, capital market investments are not the only option available - even if they happen to be my personal favorite. It is crucial to understand before making any investment that every investor has their own unique goals, risk tolerance, and time horizon. Dividend Growth Investing (DGI) is a powerful strategy, but it is certainly not the only one, nor is it necessarily suitable for everyone. To help you better un

The data, figures, prices, yields, valuation multiples, forecasts, and other financial information appearing in the site's articles and posts are accurate - to the best of the author's knowledge - as of the time the content was written or updated. Financial data may change frequently due to market fluctuations, corporate announcements, economic shifts, forecast revisions, and various other factors. Therefore, the data and figures presented in the articles should be viewed as