Investment Language 101 Series: TERM OF THE DAY: -- What Is: ' Dividend Signaling ' | E.52 | Trading Candle Cheat Sheet Incl. Each Episode.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
-- Bitshares 101 Focus/Resources Section for New Crypto Folks now included near the end of each post - starting just prior to Christmas 2017. BTS is a Decentralized Exchange and much more. Very undervalued!
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Dividend Signaling' ?
--
Dividend signaling is a theory suggesting that when a company announces an increase in dividend payouts, it is an indication it possesses positive future prospects. The thought behind this theory is directly tied to game theory; managers with good investment potential are more likely to signal. While the concept of dividend signaling has been widely contested, the theory is still a key concept utilized by proponents of inefficient markets.
--
Breaking Down...
' Dividend Signaling ' :
--
Because the dividend signaling theory has been treated with a skeptical eye by analysts and investors, regular testing of the theory has been performed. On the whole, studies indicate dividend signaling does occur. Increases in a company's dividend payout generally forecast positive future performance of the company's stock, while conversely, decreases in dividend payouts tend to accurately portend negative future performance by the company.
Testing the Theory:
Two professors at the Massachusetts Institute of Technology (MIT), James Poterba and Lawrence Summers, wrote a series of papers from 1983 to 1985 that documented a testing of the signaling theory. After obtaining empirical data on the relative market value of dividends and capital gains, the effect of dividend taxation on dividend payout and the effect of dividend taxation on investment, Poterba and Lawrence developed a "traditional view" of dividends that includes the theories that dividends signal some private information about profitability, and stock prices tend to rise when a company announces an increase in dividend payouts and fall when dividends are set to be decreased. The researchers concluded there is no discernible difference between the hypothesis that an increased dividend conveys good news and the hypothesis that the dividend increase is itself the good news for investors.
Profitability:
The dividend signaling theory suggests companies paying the highest level of dividends are, or should be, more profitable than otherwise identical companies, from an investor’s viewpoint, paying smaller levels of dividends. This basic thought indicates the signaling theory can be beaten if an investor examines how extensively current dividends act as predictors of future earnings. Earlier studies, conducted from 1973 to 1978, drew the conclusion that a firm’s dividends are basically unrelated to the earnings that follow. Still, a study in 1987 concluded that analysts typically correct earnings forecasts as a response to unexpected changes in dividend payouts and these corrections were a rational response.
Dividend Signaling in the Real World:
A company with a lengthy history of dividend increases each year is signaling to the market its management and board see profits in the future. Dividends are not increased unless the board is certain the cost can be sustained. There are several stocks with histories that look like a good bet for investors seeking ever-increasing dividends, such as National Fuel Gas, the FedEx Corporation and the Franco-Nevada Corporation.
Your Friend in Liberty, Barry.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Bitshares 101 Focus/Resources Section:
for New Crypto Folks.
https://bitshares.org/
--
-- Bitshares is a Trading platform, and a LOT more.... designed by blockchain wizard here Dan Larimer - @dan / @dantheman.
I've blogged on him, and BTS many many times.
It's a place you can use that is decentralized, with an active community, to use trading lessons like this, that we are learning together.
Just a few of my past $BTS blogs....
to help you apply lessons today!
--
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
A series designed to help all the new people flooding into & entering Crypto/Investments daily who get thrown into the rabbit hole so to speak and everything is new to them.
-- Bitshares 101 Focus/Resources Section for New Crypto Folks now included near the end of each post - starting just prior to Christmas 2017. BTS is a Decentralized Exchange and much more. Very undervalued!
It is a TLDR / Short Form Series, covering ONLY one thing each episode in blue collar, easy to understand language to give a SHORT OVERVIEW of the term or lesson of the day.
It is specifically designed this way to keep it short and simple.
People can then search out extra info if they wish.
I've never seen a regular series or resource running on Steemit to continually address this basic need so I decided to do it.
TERM OF THE DAY:
What is....
' Dividend Signaling' ?
--
Dividend signaling is a theory suggesting that when a company announces an increase in dividend payouts, it is an indication it possesses positive future prospects. The thought behind this theory is directly tied to game theory; managers with good investment potential are more likely to signal. While the concept of dividend signaling has been widely contested, the theory is still a key concept utilized by proponents of inefficient markets.
--
Breaking Down...
' Dividend Signaling ' :
--
Because the dividend signaling theory has been treated with a skeptical eye by analysts and investors, regular testing of the theory has been performed. On the whole, studies indicate dividend signaling does occur. Increases in a company's dividend payout generally forecast positive future performance of the company's stock, while conversely, decreases in dividend payouts tend to accurately portend negative future performance by the company.
Testing the Theory:
Two professors at the Massachusetts Institute of Technology (MIT), James Poterba and Lawrence Summers, wrote a series of papers from 1983 to 1985 that documented a testing of the signaling theory. After obtaining empirical data on the relative market value of dividends and capital gains, the effect of dividend taxation on dividend payout and the effect of dividend taxation on investment, Poterba and Lawrence developed a "traditional view" of dividends that includes the theories that dividends signal some private information about profitability, and stock prices tend to rise when a company announces an increase in dividend payouts and fall when dividends are set to be decreased. The researchers concluded there is no discernible difference between the hypothesis that an increased dividend conveys good news and the hypothesis that the dividend increase is itself the good news for investors.
Profitability:
The dividend signaling theory suggests companies paying the highest level of dividends are, or should be, more profitable than otherwise identical companies, from an investor’s viewpoint, paying smaller levels of dividends. This basic thought indicates the signaling theory can be beaten if an investor examines how extensively current dividends act as predictors of future earnings. Earlier studies, conducted from 1973 to 1978, drew the conclusion that a firm’s dividends are basically unrelated to the earnings that follow. Still, a study in 1987 concluded that analysts typically correct earnings forecasts as a response to unexpected changes in dividend payouts and these corrections were a rational response.
Dividend Signaling in the Real World:
A company with a lengthy history of dividend increases each year is signaling to the market its management and board see profits in the future. Dividends are not increased unless the board is certain the cost can be sustained. There are several stocks with histories that look like a good bet for investors seeking ever-increasing dividends, such as National Fuel Gas, the FedEx Corporation and the Franco-Nevada Corporation.
Your Friend in Liberty, Barry.
Trading Candle Cheat Sheet:
--
Further Reading/Source/Resources
Friend of the People -- Enemy of the State.
--
I am leaving these images I made here until I figure out one that fits properly and looks right for the first/main image for the post/series.
--
Since Steemit dev's changed the size of the picture frame that shows, it has honestly been a real problem getting images to match the screen, it was perfectly fine months ago before they messed around with it.
SMH.
Bitshares 101 Focus/Resources Section:
for New Crypto Folks.
https://bitshares.org/
--
-- Bitshares is a Trading platform, and a LOT more.... designed by blockchain wizard here Dan Larimer - @dan / @dantheman.
I've blogged on him, and BTS many many times.
It's a place you can use that is decentralized, with an active community, to use trading lessons like this, that we are learning together.
Just a few of my past $BTS blogs....
to help you apply lessons today!
--
Thanks for reading, have a nice day.
PixaBay has tons of free pictures for us all to use!!!
Super Easy/Fast Picture Edits / Resizing at: http://www.picresize.com/ and also https://www298.lunapic.com/editor/
If you liked this blog post - please Resteem it and share good content with others!
--
Some of my recent blogs:
--
Most Images: Gif's - via Giphy.com , Funny or Die.com / Pixabay. Today:
If you feel my posts are undervalued or you want to donate to tip me - I would appreciate it very much.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
--
LiteCoin (LTC) - LKdsnvSXk9JW99EiNicFMGKc1FXiBo9tUE
Monero (XMR) - d8ecb02c09f70ec10504b59b96bc1f488af28b05933893dfd1f55b113e23fbff
EOS (EOS) - 0xD37bEFf5bf07E3aa432de00cE0AaA8df603A4fB0
Ethereum (ETH) - 0x3Ad69Ff057C9533ca667B2d7E3E557F5eeFd4477
Ethereum Classic (ETC) - 0x5ab2b08d4ce8d454eb9d1ecc65c6d8b0c5f9784c
Bitcoin (BTC) - 18J6RRuzX4V7b2CDbx7tWZYNBLkkGWsvWX
DASH - XgZvsvSZgPkNbmGbRhc3S1Pt2JAc7QHwiS
PIVX - DA3azxQqJiX9t7EviuacpamfNhMi2zGAUh
Stratis (STRAT) - SNsJp6v1jXvKWy4XcXSXfNQ9zhSJJppJgv
ZCash (ZEC) - t1aCPEYELkGaf3GtgGTiCEDo7XfPm4QEwmL
Please note -- I will have limited internet access for awhile -- so PLEASE do not be upset that I cannot reply right away, or to everyone. I am dealing with some changes, and will have limited time online and will be happy if I get a few blog posts up a week.
This has really upset some people but I do not force my opinions on others, or need to communicate every detail of my life or issues, most people do not care anyways. I invested around 10 hours or more a day on Steemit most of my first 13 mths here, trying to build community, put out content and engage people, help and donate to people, and I just do not have that time in my life right now, and that includes for replies and voting/curation.
I have done my best, sorry if you do not understand like some are clearly having a problem with. It's a blogging platform, and I will do my best at everything, and to keep blogging.
Carry On.
Nice post
everything is cryptocurrency
A friend of mine has issued a challenge, turn 20 GBP, 20 EUR, 20 USD or whatever your native currency it into as much as you can by playing with the crypto markets.
See more details here:
https://steemit.com/cryptocurrency/@rpettigrew/play-the-2018-crypto-challenge
Wow! This post is really helpful. I'm looking at investing in cryptocurrencies. Thanks for sharing.
i just try to help
https://steemit.com/bitcoin/@coinbizpro/how-to-earn-200-per-week
Spam/
Stop it.
this is not spam.
Your posting of a link on my page, completely unrelated to my post IS SPAM.
You made no comments about my article, all you did was post your link and I bet if I checked your comments page, you likely SPAMMED this response to more than me.
Stop it. It IS spam, how about tell me how it is not?
Look at the title of your article you dropped here.
You will be flagged for this stuff.
You have been warned on multiple pages, your whole comments tab is full of your spa,,u link dropping with useless comments, making no effort with the Steemit community.
Flagged for spamming numerous Steemit pages all day long, the proof is on your comments tab, I always check before flagging people.
Check your rep. score - flagged from 30 to 22 in one vote.
Stop the crappy spam, 3 word comments and link dropping or you will be flagged down to nothing for this stuff, you have been warned many times.
Thank you for your time. I hope this was a useful experience for you