The beginnings on stock market were not easy as I was not sure how to find proper data and information. In this article I would like to make things easy for you in order to save you valuable time. People also ask me whether make sense to invest amounts like 1 000 Euros. In my opinion it is great to invest small amount for start. First of all your mistakes will not cost you much. Second of all you will see if you can sleep well during market meltdowns. You will see whether you are able to sell when shares go up and buy when shares go down. As Warren Buffet said once it is wise to be “Fearful when others are greedy and greedy when others are fearful.” Sounds easy right? Believe me it is not that easy for most if investors. However also believe me that panic on the market create lot of nice opportunities to invest. Basically all you need to do is adding shares where the indexes go down and selling shares when the indexes go up since the value of shares is going up only in the long run as you can see on the long term graph of S&P index which represents 500 shares on the US stock market.
However before you can invest you need to make decision which holding to buy. Decision making is crucial for succes on the market. And how can you make good the decision? Based on what? Of course, based on proper data – technical and fundamental. In this article I will show you where you can find them. My suggestion is to start with screening so you can easy identify which shares suits to your needs. For most of the shareholders is important dividend yield which is the ratio of a company’s annual dividend compared to its share price. It means dividend yield is presented as a percentage. The question is what percentage is good enough. For some shareholders it is even 1% as they are focusing on growing companies such as Microsoft or Apple. Some shareholders want 5% as growth does not matter for them as they prefer nice juicy dividends. Personally I am filtering companies above 3% dividend yield as it beats current inflation. I am using screener on website finviz.com for screening purposes. In picture below you can see top 20 US market companies above 3% dividend yield sorted by market cap as at 29 November 2019.
If you click on the ticker you can see further financial information about the company. For instance we can see details related to Exxon Mobil Corporation (ticker XOM) in order to find other vaulable information. Current dividend yield is slightly above 5% which is quite nice. You can see also other important ratios in order to evaluate whether company is too expensive (P/E ratio) or whether swimm in debt (debt/eq). All ratios can be obviously also filtered for all companies.
When you are happy about financial results you can proceed with fundamental data. I am using web seekingalpha.com for this purposes. You cannot see all the articles in free version however there is lot of current once for big companies such as Exxon. Seekingalpha also contains valuable information about dividends. For instance we can see dividend growths 37 years even though all the crisis and all headwinds! Quite nice performance right? In further articels I would like to focus on companies with growing dividend in long term as I believe they are the best holdings during the recession.
Best broker is..
As soon as you are full of data and articles you can jump to buying! I recommend broker Degiro as they have really fair fees (especially for companies traded on NASDAQ and NYSE). As alternative I am also using app Revolut where you can buy limited amount of shares for free. Moreover it is not just for stocks but great app for currency exchange and another functionalities. Unfortunately they do not offer stocks from european markets.
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