Owning Stocks

Key Takeaways

• Earnings per share (EPS) and dividends per share (DPS) indicate stock returns on investment.
• Dividend yield measures a shareholder's cash return relative to investment.
• Growth ratios such as the internal and sustainable growth rates indicate the company's ability to grow given earnings and dividend expectations.
• Market value ratios, most commonly price-to-earnings and price-to-book, indicate a stock's market popularity and its effects on its price.