Personal Development, Finance and Investing For Filipinos
An investment in knowledge always pays the best interest. Financial Education is your best investment.
Prepare for the road ahead. Investing in the stocks I recommend really can change your life.
If you don't find a way to make money while you sleep, you will work until you die.
Attract what you expect. Reflect on what you desire. Become what you respect and mirror what you admire.
PSE Academy, the official market education website of the Philippine Stock Exchange, Inc. (PSE) conducted a free webinar about Fundamental Analysis. The resource speaker was Mr. Aaron Say, Consultant for Market Education, First Metro Securities Brokerage Corporation. Here's the excerpt from the webinar.
Why Do We Do Fundamental Analysis?
Because, as investors we need to know.
And looking for this answers to these questions is Fundamental Analysis.
Is the Company giving out Dividends?
For complete list of company, visit edge.pse.com.ph or www.pse.com.ph
1. You must have it a day before ex-date.
2. Tax on Dividend = 10%
How to calculate dividend yield:
Just take the dividend amount multiply by 90% (less 10% for tax) , divide it by the stock's price, and then multiply by 100 to convert to a percentage.
Net Dividend Yield = Dividends x 90% / Stock Price x 100
An example, HOLCIM PHILIPPINES, INC. (HLCM) declare a cash dividend Php 0.98 per share, and then the closing stock price per share is Php 14.78. Using the stated formula, Holcim dividend yield as:
5.96% = 0.98 x 90% / 14.78 x 100
Where else can you get at least 5.96% net interest for your money?
Do they have a great Products and Services?
Do you need to pass through it everyday? (NLEX, SLEX, etc.)
Do you always find yourself craving for that chicken and mojos? (Foods)
Do you think they really "got it all for you"? (Malls)
Do you feel "you are in good hands"? (Banks)
Do you think owning a school is a good idea? (Schools)
Do they have a lot of assets they can use in their business?
A lot of earning assets.
A lot of cash to use when needed.
Will Sales and Profits grow in the future?
New Projects/New Frontiers
Has Management shown capability that they can deliver?
Know your Management (Attend annual stockholder's meeting).
How does it compare to my other investment options?
You can check the update and records of specific listed company with your broker platform.
and from there, you make your Investment Decision.
In Summary, we do Fundamental Analysis to know:
Disclaimer: This excerpt from the webinar presentation is for educational and information purposes only. This should not be construed as a professional, financial, or investment advice, or recommendations from the PSE.
For more updates about
Personal Development, Financial and Investment Education. Join and Subscribe to my Newsletter.
ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.