{"id":1112,"date":"2018-07-01T08:11:26","date_gmt":"2018-07-01T02:41:26","guid":{"rendered":"http:\/\/capitalante.com\/?p=1112"},"modified":"2020-05-05T11:06:13","modified_gmt":"2020-05-05T05:36:13","slug":"how-to-pick-best-stocks-step-by-step","status":"publish","type":"post","link":"https:\/\/capitalante.com\/how-to-pick-best-stocks-step-by-step\/","title":{"rendered":"How to Pick Best Stocks for Consistent Returns"},"content":{"rendered":"

Many beginners invest in the share market to make their fortune. But after sometimes they leave the market suffering a huge loss. It is also seen that many investors can never make a profit. They also give up investments in the share market. It is seen that due to some blunders investors make the loss. Here we will guide how to pick best stocks for consistent returns.<\/span><\/p>\n

How to Pick Best Stocks for Consistent Returns<\/span><\/strong><\/span><\/h2>\n

After choosing the sectors where you invest, you need to pick the best stocks for consistent returns. In order to pick the best stock, you should check out the following parameters of a company before investing in it.<\/span><\/p>\n

Parameter #1. Revenue \u2013<\/span> Revenue or net sales of a company should be constant for at least 5 years. You may check that the company has been generating sales growth annually during the last 5 financial years of at least 10%.<\/span><\/p>\n

Parameter #2. Net Profit \u2013<\/span> The net profit of a company increases at least 15% on a year-on-year basis.<\/span><\/p>\n

Parameter #3. Healthy dividend payout and stable Earnings-per-share<\/span><\/h3>\n

Let\u2019s assume, a company has a net income of $ 10,000 per year. It Pays $5,000 in a preferred dividend to investors. It has 50 shares outstanding.<\/span><\/p>\n

\"Earning<\/a><\/p>\n

It is a good idea to invest your money in those stocks that regularly pay a dividend and deliver a Healthy dividend payout. The stocks which have delivered healthy dividend-paying must have following features<\/span><\/p>\n