O'Reilly logo

The Dividend Investor: A practical guide to building a share portfolio designed to maximise income by Rodney Hobson

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

Chapter 15. Turning Companies Round

Dividend investors will, on the whole, be looking for solid rather than risky investments but it can still pay to look at companies that have fared badly in the recent past if there is reason to believe that better times are arriving.

This does involve an element of risk, as it could be a false dawn. Questions to consider are:

  1. Is there new management with a better grasp of the business?
  2. If not, has existing management learnt from past mistakes?
  3. Were the problems internal or were there external factors beyond the board’s control?
  4. Have trading conditions improved?
  5. Are they likely to deteriorate again?

The concerns for dividend investors

These are questions for any investors to ask but for dividend ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required