Technique to find growth share:
Investors want to take profit from stock or share investment. But only buying shares randomly can not guarantee profit for the investors.For this, the shares which have present & future potential should be bought. The emerging company's shares having good future prospects are the growth shares.
The question is how anyone can buy a Growth share.There are some technique from the experts about how to identify a growth share.
Shares having low P/E ratio but good dividend yield.How will you calculate your dividend yield? Simple, Suppose
Company's Dividend- 20%
Face value - $20
Market price $30
So the dividend yield in this regard will be 13.33%
which is very much better than the existing bank interest rate
The main feature of growth share is that the share price will be double or triple in the future So some common factors to follow in a growth company.
- The business of the company is increasing day by day
- There is significant increase in the EPS of the company
- Increase in the Net profit
- Well management & Board of Directors
- Company has a significant reputation than its competitors
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