Metals, Defense, Energy and Food (MDEF Investing) - Growth/DEMAND A simple, time tested check to see if a company (or market sector) is healthy and warrants your attention as an investor: CapEx spending. If a company (or sector) is spending its earning to expand operations to meet future DEMAND, this is seen as positive for future earnings. If a company (or sector) is choosing to return its profits through dividends, this means they see weak future growth via DEMAND. The increased dividend is meant to reward investors who hold the stock regardless of weaker earnings. Check the CapEx spending on each of your holdings. Then, check the CapEx spending on all companies in the MDEF sector:
Posted on: Tue, 15 Oct 2013 01:46:06 +0000
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