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Wednesday, December 1, 2010

Dividend analysis of telecom

The aim of this analysis is to compare the different companies of Telecomunications from the point of view of those most interesting companies to invest on according to their dividends.

First, we extract the companies that are part of this sector among the more than 2.500 companies that make up our database, obtaining a total of 113 listed companies worldwide.

As criteria for analysis / assessment to conduct our ranking of companies we use the following:

1. Current percentage dividend. Bigger is better
2. Average dividend rate from 2004 to the present. Bigger is better
3. Payout Ratio. The lower the better
4. Price to Earning Ratio. The lower the better
5. Price to Book Value Ratio. The lower the better
6. Number of years that has increased its dividend over the previous year since 2004. Bigger is better.

When drawing up the ranking, we will take each of the first 5 criteria and give 1 point to the first company, 2 to the second and so on up to 113.

Subsequently, we will add the points for each company following the 5 criteria and divide it by the sixth 'number of years that has increased its dividend over the previous year' in order to give prominence to the companies that are serious about having a stable and growing dividend.

The results of the first 28 cmpanies are as follows:


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