While folks own different investments for a variety of reasons, income, growth, etc. all investors should pay attention to quarterly earnings reports. Earnings signal the health of the company, how well they are able to predict their own performance, and may signal future performance. Earnings reports are also a critical opportunity for new announcements like changes in leadership, strategy, or dividends. For example: Here are some key facts from Apple's Q2 earnings report:
- Net Income: $13.6 billion (2014 Q2 $10.2 billion)
- Revenue: $58 billion (2014 Q2 $45.6 billion)
- IPhone Sales: 61.2 million-increase of 40%
- Increase dividend 10.6% to $2.08/share
According to BloombergBusiness the dividend increase, coming to a grand total of $12.1 billion in annual payments, crowns Apple as the biggest source of dividends in the S&P 500 Index surpassing the previous title holder Exxon Mobile Corp. with $11.6 billion paid in annual dividends.
Understanding that investments are tools to accomplish specific goals, it is always important to stay up to date with how they are doing and if they are meeting the goals that you set. Talk with an advisor about which investments best meet your needs and it is likely you will enjoy the benefits.
Caroline Hill, Financial Advisor
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).