EARNINGS don't represent actual cash that comes into the company. Cash flow does.
EARNINGS are more easily manipulated by savvy CFOs and CEOs Earnings contain all kinds of non-cash expenses. Things like depreciation, amortization and stock-based compensation are expenses that affect earnings, but do not impact cash flow.
CASH FLOW is a more accurate representation of a company's performance. Dividend investors will like to see that companies have ample cash flow to pay the dividend.
To calculate cash flow per share:
You'll find a company's cash flow reported on its statement of cash flows. Divide it by the number of shares outstanding (found on the income statement) to figure out what the cash flow per share is. Then, just like the P/E calculation, you divide the price of the stock by the cash flow per share.
MY SRS $84K CONTRIBUTION HAD GROWTH FURTHER TO $308,800
My last contribution for my SRS account was in 2014, total contribution stayed at $84k. Altogether I had withdrawn $170k from my SRS account. $110k withdraw previously. Last year withdraw $40k and this year $20k.
My shares in my SRS account plus cash balance as at end August 2017 add up to $138,800.
Since end August 2015 I had sold off Cordlife shares. I had bought into Trendlines. My stocks holding in my SRS account are as following:
Hai Leck - 42,500 shares
Hai Leck share price was affected by low oil price as its depends on oil and gas business. The company is still profitable, cash-rich and debt-free. Dividend paid out last year - 5 cents. (3 cents special dividend)
Straco – 90,000 shares
Straco a cash-generating machine.
Trendlines – 109,800 shares
A key catalyst for the stock price would be exits and the resulting dividend payouts. Exits will pick up pace given that within Trendlines' expanding portfolio of companies, more start-ups will reach higher levels of business development. Trendlines expect to receive royalty payments to stream in from 1H 2018.
Valuetronic – 20,800 shares
Valuetronic is back on growth path in revenue and profit.