Stocks Doing Right by Shareholders

by Rich Duprey, for The Motley Fool, January 14, 2010.

Between shareholder-friendly stocks expected to underperform the market and highfliers that pay little heed to their owners’ interests, you’ll find top-flight companies that also treat their shareholders with respect.

Institutional Shareholder Services — the big name in corporate proxies — measures how well a company behaves in as many as 63 categories covering four broad areas. Moreover, each company is scored relative to its market index and its industry group. It assigns the stocks a rating that it calls its corporate governance quotient, or CGQ.

Some evidence supports the notion that companies with weaker governance have higher risk, decreased profitability, and lower valuations. We’ll look at stocks that Motley Fool CAPS investors have marked to outperform the market and that also sport above-average CGQ scores, either in their index group or among industry peers…(continue reading)

Advertisements

0 Responses to “Stocks Doing Right by Shareholders”



  1. Leave a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s




Blog coordinator

Cefeidas Group

Archives

cgl-med-linked-in

cgl-med-linked-in
free counters

%d bloggers like this: