I wanted to share with you something that has become very parent over the last 7 years I have been working with VectorVest – the strong correlation between earnings and dividends.
When one thinks about this – it makes perfect sense – right? Companies that are growing their earnings are companies that are in a better position to meet dividend payments!
Well, that is the theory – let’s see this put into practice. For this exercise, I am only looking for dividend companies in the ASX100 that are paying dividends. So to begin this exercise I will need to develop a watchlists of the ASX100 that exclude non-dividend paying stocks. The next step will then be to put these stocks into a WatchList and graph some of the stocks to check for a correlation. The last check will be to view the composite average of all the stocks to check for any correlations.
The results were most interesting!
CLICK ON THE VIDEO to see the results.