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The 8 Rules Of Dividend Investing

November 11, 2019 Leave a comment

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Dividend investing involves accumulating stocks that issue dividends to generate a steady stream of passive income.

Rule #1: The Quality Rule

Invest in high quality businesses that have a proven long-term record of stability, growth, and profitability. There is no reason to own a mediocre business when you can own a high quality business.Rank stocks by dividend history and corporate history ,the longer the better. Stocks must have paid steady or increasing dividends through the worst periods of financial stress and turmoil to be eligible for inclusion in your portfolio.

Rule #2: The Bargain Rule

Invest in businesses that pay you the most dividends per rupee you invest. All things being equal, the higher the dividend yield, the better. Additionally, only invest in stocks trading below their historical average valuation multiple to avoid investing in overpriced securities. So rank stocks by dividend yield. Only stocks trading below their say 10 year historical average valuation multiple are eligible for inclusion in your portfolio.

Voya Corporate Leaders Trust – The Virtue Of Sloth

November 11, 2019 Leave a comment

Ever wondered what might happen if you just bought some leading stocks,once only ,early in your life,and simply held onto them for a life-time ? Generally practiced sloth? Arousing yourself perhaps only if a company went bankrupt or stopped dividends ?

Then here is a story for you : Read more of this post

Filed under Paper Assets, Theory, Tool Kit Tagged with Investing, mutual fund, portfolio, postaday, scripts, shares, stocks, Voya Corporate Leaders Trust

Ownership, Inheritance, Succession And Control In Family Businesses

July 30, 2019 Leave a comment

Starting-up and getting a business to stabilize and start paying off, is one sort of challenge.At the time,an entrepreneur might even be glad to have family and relatives pitch in and give them a helping hand.

Its only a little later that a whole lot of other challenges crop up.People who bear risk ,put their own life and priorities on hold or put in substantial efforts into a business expect that their contributions will be rewarded,not just perhaps in the form of a one-time or limited pay-out but in terms of a share of future profits and control over the business,so that they can guarantee and determine the quantum and timing of payouts.Perhaps even these challenges could be managed by having open discussions with all concerned ,ensuring full buy-in and clearly recording what is owed to who and why. Read more of this post

Filed under Entrepreneurship, Theory, Tool Kit Tagged with compensation, core business, daughters in family business, family business, family business ownership and control models, founder, free loaders, inheritance and succession in family business, nested model, owner-manager, partnership model, postaday, private company, profit distribution, public model, successor

The Pros And Cons Of Requiring Children To First Work Outside The Family Business

July 12, 2019 Leave a comment

wealthymatters Generally,the term ‘family business‘ evokes plenty of envy,fueled by images of no-account inheritors living it up,even as other meritorious souls in society don’t get a chance to take the easy road to the good life…….of concentration of wealth in the hands of the few,to the detriment of all others.

Under the circumstances,business schools,family-business consultants and the media today,feel the need to recommend that people work for at least 5 and sometimes 10+years outside the family business.In fact the education system feels the need to socialize children to seek success in fields far removed from their parents own occupation.Besides business families themselves feel it good PR today to talk of how their children won their spurs outside the family business and so are not mere inheritors.

Here are the pros of first requiring family members to work elsewhere before entering the family business : Read more of this post

Filed under Entrepreneurship, Theory, Tool Kit Tagged with family business, inheritors, postaday, succession, wealth envy, working in the family business, working outside the family business

Questions To Ask Before Joining The Family Business

July 6, 2019 Leave a comment

wealthymatters Even as there are plenty of people who effortlessly slide into satisfying roles in the family business and go onto growing it and successfully passing it down yet another generation,there are plenty of people who have regrets.Regrets about joining the family business or regrets about inducting a family member into the family business. In the worst case scenario,family businesses have to be split,forsaking the synergies that were taken for granted when the consequent parts were one whole or worse yet,families themselves have acrimonious splinters and end up losing everything they had.

A way to avoid unnecessary pain,is simply to reflect deeply before adding a business angle to family relationships and having the necessary conversations in an open manner instead of avoiding them,only to find oneself in the midst of bigger problems. Read more of this post