Doing Well by Doing Good

Is it possible for a company to reap financial rewards while still treating their employees and customers well? Not all companies view their employees as expenses to be minimized, rather than as valuable members of the corporate team.

How to Invest in MLPs, Part Two

Part two in a two-part introduction to the Master Limited Partnership. Learn about this important tool for income and dividend-growth investors.

How to Invest in MLPs, Part One

Part one in a two-part introduction to the Master Limited Partnership. Learn about this important tool for income and dividend-growth investors.

Understanding Market Capitalization

There are many different factors to consider when determining the actual value of the individual shares of stock being offered for any publicly traded company, rather than simply basing your final decision solely on the listed stock price alone. Market capitalization, rather than stock price, is the true measure of a company’s price. The “market cap” of any company is achieved by multiplying the current list price for a single share of stock times the total number of outstanding shares that are offered by the company. Sound confusing? It’s really very easy. If a company stock is currently selling at $20 per share and there are a total of 10 million shares of stock altogether, then the market cap is $200 million. Investors use this number, among other factors, to help determine the amounts of risk and growth that are potentially involved before acquiring stock in that particular company. For example, if you were to look in the Wall Street Journal, you might find two companies with the exact same stock price, but because one company is very small and only offers 1 million shares and the other is perhaps General Electric or IBM with perhaps 10 billion shares outstanding, the risk and growth potentials will vary significantly between these two organizations. Market capitalization helps to level the playing field for the investor, allowing him to more easily compare and contrast between the two. Once you have calculated your market cap, this number will fall into one of five various categories of market value. Micro Cap: Companies with a market cap of $250 million or less are considered micro caps. These are your smallest companies and usually carry significant amounts of risk. Small Cap: Companies with a market cap of between $250 million and $1 billion are small caps. These tend to rate a bit better with investors when...

What’s Wrong With The Cult of Shareholder Value?

In the early 1980s, when the first stirrings of global competition began to hit American shores, and computers started to make inroads into productivity gains, a generation of “corporate raiders” and disgruntled investors began proposing ideas…

Dividend Stocks Are Better Than Bonds

Bonds may be considered conservative, but they’re no match for the performance of dividend-growth stocks.

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