Check for possible di–worseifications that may reduce future earnings.The key issue is price and the P/E ratio will tell you whether you are paying too much. These are big companies that aren’t likely to go out of business.If it’s a high %, then the dividend is riskier. It can earn less money and still retain the dividend. If it’s a low percentage, then the company has a cushion in hard times. When possible, find out what percentage of the earnings are being paid out as dividends.Since you buy these for dividends(why else would you own them?), you want to check to see if dividends have always been paid and whether they are routinely raised.Note the type of stocks he thinks we should be looking out for. Following are some of the gists taken from the book. Peter used his skills at Fidelity to rake in huge profits from stocks that the market discovered much later than he did. He suggests that everyday information can be used to find spectacular growth stocks. Peter Lynch argues how jokers like you and me could find hidden gems in the stock market much before the bigger jokers of Wall Street can if we keep our eyes open. ? SUPPORT BESTBOOKBITS BY CLICKING THE LINKS BELOW ? MY FREE BOOK TO LIVING YOUR DREAM LIFE”
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