Deep Dive: Here’s a clear case for owning dividend stocks instead of bonds

Overvalued stocks and rising interest rates suggest bonds might now be a better investment. But there’s a strong argument that shares of well-established companies with attractive dividend yields are much better long-term investments than bonds are. Money managers use all sorts of complicated analyses and charts to explain why you should invest in, or avoid, … Read more

What is the difference between accrual accounting and cash accounting?

A: The primary difference between the two principal business accounting methods, accrual accounting and cash accounting, is when revenue and expenses are recorded as taking place. Accrual Accounting Accrual accounting is the most common accounting practice for corporations. Businesses with annual revenues in excess of $5 million are required to use the accrual method for tax purposes. … Read more

Amazon Gains Ad Market Share From Google, Facebook Inc.’s (AMZN) advertising business is gaining momentum, and is rapidly grabbing market share from leaders like Alphabet Inc.’s (GOOGL) Google and Facebook Inc. (FB). Citing the projections made in the recent report by research firm EMarketer Inc., Bloomberg reports that Amazon “will generate $4.61 billion in U.S. ad sales this year, which represents 4.2 … Read more

Cool Beans

What is ‘Cool Beans’ Cool beans is a slang term used to refer to something favorable that happens. For example, an employee receiving a raise might reply with the words “cool beans,” upon receiving the news. BREAKING DOWN ‘Cool Beans’ Cool beans is synonymous with “great” or “awesome,” with a bit of humor added. Cool beans … Read more

What common growth rates should be analyzed when considering the future prospects of a company?

A: Some of the most common growth rate metrics investors and analysts consider in evaluating a company’s future prospects and suitability as an investment are revenues and earnings, the price-earnings (P/E) ratio, the price-earnings to growth (PEG) ratio, and return on equity (ROE). Revenues and Earnings Initial figures for investors to consider are revenue and earnings. … Read more

Regional Asset Liquidation Agreement (RALA)

What is a ‘Regional Asset Liquidation Agreement (RALA)’ A Regional Asset Liquidation Agreement (RALA) is an agreement between an asset manager and the Federal Deposit Insurance Corporation (FDIC) for the disposition of an insolvent bank’s assets. It was used four times between 1992 and 1993 to dispose of the distressed assets and nonperforming loans of small financial … Read more

What economic indicators are important to consider when investing in the banking sector?

The banking sector is a hinge for nearly all economic activity. For that reason, there’s hardly an economic indicator that doesn’t relate to the banking industry. The most important indicators include interest rates, inflation, housing sales, and overall economic productivity and growth. Each bank investment decision should include an evaluation of the specific bank’s fundamentals … Read more