Market Mavens – Stock Research Made Simple

Income Stocks To Buy Before Earnings

Much of the income stock universe will report 2019 first quarter results starting on April 28 and running through May 8. Last week there was a 4% to 5% sell-off of many income stocks. The drop was fueled by some negative Wall Street analyst comments that don’t seem to be well grounded in reality. For many stocks, the quarterly earnings reports are most of the real news upon which long term investors can hang their hats. I expect that earnings from quality dividend paying companies will positively surprise the market and lead to a reverse of last week’s share price declines. For long-term, income focused investors, earnings season is a mixed bag. The actual earnings and management comments provide an accurate snapshot of a company’s business and how well they are operating in relation to expectations. For the stocks I follow, I have a good idea on where the important numbers such as cash flow and dividends should trend. Whether a company remains on or misses the forecast trend determines my recommendation concerning the stock. The downside to earnings are the games played between Wall Street analyst estimates and the actual earnings result. An earnings “miss” can produce significant share

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