What should investors look out for when investing in equities?

It is useful to consider the investment objective before deciding on what information is needed to analyse the companies.

1. Investing for Income:
For investors looking to generate income through investing, you may choose to focus on the dividends which are paid out by the company.
This is typically measured by the dividends paid per share, or dividend yield.

2. Investing for Capital Appreciation:
Some investors however, prefer to look at companies which have exhibited higher than average growth over the years.
You would typically focus on how the company has grown in terms of profits.
Strong profit growth typically reflects that the company is doing well fundamentally and is earning more every year.

Once you have decided on your investment objective, you may use technical analysis to help analyse your entry and exit points.

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