Despite recent sell-off, long term shareholders of American Financial Group have profited, with a 15% annual gain over five years. The sell-off could be an opportunity, but it's worth checking for signs of long term growth.
Some investors question American Financial Group's earnings outlook despite its alignment with the market; this skepticism, coupled with risk factors, could be impacting its lower P/E ratio and stock prices.
Insiders selling stake may cause shareholder concern. Insider confidence may not be fully represented due to higher sale price. Absence of insider buying could be discouraging, but high insider ownership aligns management's incentives with shareholders.
American Financial Group's EPS growth outperforms its share price increase, yet the market seems to have moderated its growth expectations. Despite a 5.6% share price dip in the past year, this could present a buying opportunity.
RDK79
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Where was EJ when Qualcomm was at 118 last month. Now it’s back in the 140s and now they change to a ‘buy’. Most of these folks are useless and put out updates to keep a paycheck. No metrics or accountability for decades. What a job. Recession is usually the only filter.
A company reducing the size of its dividend is a sure sign that things are not going well. Companies set their payout ratio at a level they are fairly certain they can afford. If they must reduce the dividend it means profits are under pressure and things are not going according to plan. Earnings will probably come under pressure and the lower yield will make the stock less attractive to investors. Both will probably lead to a much lower stock price. Stocks with high dividend yields may appear attractive to income investors. What really matters, though, is how sustainable the dividend yield is. A stock with a lower yield than the prevailing interest rate can turn into a good investment if the dividend is sustainable and grows gradually over time. This gives you the benefit of both compound interest and capital gains. $Royal Bank of Canada (RY.US)$$American Financial (AFG.US)$$International General Insurance (IGIC.US)$$DHT Holdings (DHT.US)$
American Financial Stock Forum
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Stocks with high dividend yields may appear attractive to income investors. What really matters, though, is how sustainable the dividend yield is. A stock with a lower yield than the prevailing interest rate can turn into a good investment if the dividend is sustainable and grows gradually over time. This gives you the benefit of both compound interest and capital gains.
$Royal Bank of Canada (RY.US)$ $American Financial (AFG.US)$ $International General Insurance (IGIC.US)$ $DHT Holdings (DHT.US)$
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