You shouldn't miss this. 2 dividend stocks that are selling below book value
Shares can be bought with different strategies. Maybe we believe in the product and know the company will do well. Or we look at the numbers and go with them. One such perfect opportunity may be when a company is selling below book value!
When a company is below book value, it means it is being sold at a price lower than its total assets as shown in the financial statements. If a company is being sold for less than its book value, it means that its current market value is less than the value shown on its books. This usually happens for several reasons:
- First, the book value of the asset is only reduced by depreciation over the years, not by actual losses in value. Thus, the market value may be less than what the firm records in its books for the asset.
- Second, the use of historical cost in accounting does not reflect today's fair value of a firm's assets. This may be lower if the firm is not going through a good period.
Thus, selling…
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Regional banks... I don't think I have the guts for that, but it could be a good opportunity.
The dividends aren't all bad, but I'm betting more on the classics and avoiding the wilds