Unbiased Investment Education
for Individual Investors like you.
An approach that seeks stocks with price-to-sales ratios below those of their industry as well as strong sales growth and price momentum.
Stock Investing Strategies
This e-book, available exclusively to AAII members, provides a general outline for analyzing stocks and walks you through the process as it is practically applied to specific types of investment approaches.
Using Cash and Short-Term Bonds to Avoid Taking Losses in Retirement
Combining a stock and bond allocation with cash and short-term bond funds...
Steps to Smoothly Transfer Control of Your Family's Finances
Succession planning is one of the most the important actions to ensure that your family thrives from a financial standpoint for many generations.
Top AAII Articles
Many investors seek shelter from stock market storms in more mature dividend-paying companies, since the income from these firms provides at least some positive return in an otherwise bleak environment. But the last economic downturn tested even the most mature and stable firms, with some forced to cut dividend payments. What signs can you look for that indicate the safety of a company’s dividend payment stream?
Financial advisers use a variety of investment strategies to replace retiree employment salaries or business income. But one of the most common approaches is the dividend yield strategy. Relying on dividends for income is a strategy that has served investors well in the past. The dividend yield strategy has been so attractive because it professes to meet the “golden three” outcomes for retirement-oriented investing—income, capital preservation/growth and liquidity. But as markets have evolved and the retirement investing landscape has shifted, is there anything about this strategy that should concern investors?
As companies strive to return excess cash to shareholders, they can pay out dividends as well as repurchase outstanding shares that have been issued to the public. When a company reduces the number of outstanding shares, remaining shares gain a slighter larger proportional claim to the company and its profits. This allows earnings per share to expand more quickly than net income. A share buyback is also a signal to the market that management thinks that the stock is undervalued and the company is repurchasing shares at a discount.
What's the allure of dividend-paying stocks? Dividends provide a segment of return that is always positive. Increases in dividends provide an increased positive cash return and, consequently, increase the value of the instrument producing that return. Positive fluctuations are normal in the world of cash payments to shareholders; negative fluctuations are a rarity. Over time, reinvesting income that increases can result in yield from income alone that’s far higher than anyone can reasonably expect from the total return in the equity market.
The AAII Investor Sentiment Survey measures members who are bullish, bearish, and neutral for the next six months.
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AAII Model Portfolios
Throughout the year, AAII updates you on the holdings, performance and investment strategy behind our research portfolios.
(For Members Only)
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|Data as of 4/30/2016.|
AAII Stock Screens
Sign Up to Receive Local Chapter Meeting Invites
AAII Local Chapters offer investment education to members in a "person to person" social setting located in your own community.Recent meetings have included:
"Nest-Egg Survival: Investing and Spending in Retirement"
Maria Crawford Scott, Former editor, AAII Journal "Today's Investment Outlook"
Sam Stovall, Chief investment strategist, S&P Equity Research Services
"The Importance of Tax Diversification: What You Need to Know"
Christine Fahlund, senior financial planner, T. Rowe Price, Inc.
Retirement Planning: Misconceptions About Life in Retirement
"Some people spend more time planning a two-week vacation than they do retirement planning."
Retirement is a passage from one lifestyle to another. One way to think of the term "retire" is by placing a hyphen between the 'e' and the 't' and creating a new term—re-tire: To put on new treads.
Those who take the voyage seriously and do the right kind of retirement planning usually have a smoother trip and more fun.
Discussions with seasoned retirees indicate that there are many myths and misconceptions about retirement. Often you will hear these myths stated as fact. Here are some of the most common ones.Read More »