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John Schroeder

What is a Dividend Aristocrat?

by John Schroeder December 22, 2010

Each year, Standard and Poor’s publishes its dividend aristocrats index of dividend paying stocks. To many income investors, this list is considered the Holy Grail of income stocks. It is comprised of some of the world’s most well managed and profitable blue chip companies that can make for great investment opportunities. The Dividend Aristocrats Index [...]

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How the Price to Earnings Ratio is Calculated

by John Schroeder December 16, 2010

The price to earnings ratio (P/E ratio) represents a company’s current share price compared to its earnings per share. Commonly referred to as the earnings multiple, the P/E is commonly used by investors to compare and analyze stocks, as well as determine if a company is under or overvalued. There are many different versions of [...]

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How to Calculate Dividend Yield

by John Schroeder December 13, 2010

One of the most widely used financial ratios to track income stocks is known as the dividend yield. The dividend yield, also referred to as the current yield, represents the annual dividends paid out by a company in relation to its share price. Basically, it is the return on investment that an investor could expect [...]

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How to Calculate the Yield on Cost of a Dividend Stock

by John Schroeder November 23, 2010

Investing in dividend paying stocks is a popular investment method for successful income investors. One of the first things you will need to know is how to calculate the yield on cost, an important financial ratio used to help select investments. While the current dividend yield of a stock is readily accessible on any financial [...]

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How to Tell if an Option is In the Money

by John Schroeder November 19, 2010

A stock option that is considered to be in the money holds what is called intrinsic value. The intrinsic value of an option is the difference between the strike price and the actually share price of the stock. In this case, the strike price of the option is more valuable than the actual share price [...]

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What is the Option Expiration Date?

by John Schroeder November 15, 2010

The expiration date of a stock option represents the day on which the contract is no longer valid. After this date, the contract no longer exists unless it is exercised prior to expiring. In the U.S. markets, the expiration date for all option contracts is set at the third Friday of every month (unless it [...]

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Option Strike Price Explained

by John Schroeder November 10, 2010

The strike price, also known as the exercise price, of a stock option represents the price at which an option contract can be exercised. For a call option, it signals the share price where the underlying stock can be purchased. The strike price of a put option represents the value at which the underlying security [...]

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