Investing for Beginners , investing

Value stocks are opposite to growth stocks and attract investors not by growth perspectives but by stable cash and dividend flow. Market ratios (P/E, P/B and other) of value stocks are low and together with high dividend yield that makes them attractive investments.

Proper value stocks should have these attributes:

• High dividend yield
• High dividend payout ratio
• Low beta
• High profitability of the company
• Low probability of insolvency
• Stable cash flow
• Low operating leverage and manageable financial leverage

Read more about value investing.