The basics

What is SPIVA?

If there is one thing every investor should know about before considering the purchase of an actively managed mutual fund, it is this: the SPIVA report. SPIVA stands for “S&P Indices Versus Active” and it describes a semi-annual scorecard comparing […]

Important details

So, I should buy companies with the highest dividends, right? Not so fast. There is something called the “dividend trap” which refers to the act of buying a stock for the high dividend then getting caught when the dividend is […]

What are dividends?

Some companies, often large profitable ones in established industries, pay out a portion of their profits to the owners (shareholders).  These are dividends. Dividends are real cash payouts that arrive in the investment account of the shareholders on a (hopefully) […]

What are stocks?

Stocks are shares of a company.  Owning a stock (or share) means you own part of that company.  Being part owner of a company entitles you to a share of the future earnings of that company.   How are stocks […]