YoAfrik Portfolio Podcast

In this episode, the host delves into the intriguing and often misunderstood concept of dividends. Dividends are a portion of a company's profits that are distributed to shareholders, and in this episode, we learn about the different types of dividends.


The host also explains the different dividend dates and shares a practical example of how dividends work. We then learn about how investors can use dividends in their investment strategy, such as looking for companies with a history of paying and increasing their dividends, and reinvesting dividends to take advantage of compound interest.

Overall, this episode provides valuable information for anyone interested in finance and investing, and offers practical tips for incorporating dividends into an investment strategy. To hear the full episode, tune in to the YoAfrik Portfolio Podcast.

In this episode of the YoAfrik Portfolio Podcast, we explored how ChatGPT can be used to analyze a company's financial statements. We learned that ChatGPT is an AI-powered language model that is capable of generating financial ratios, which can help investors make informed decisions about investing in a particular company.

We began by discussing the importance of financial ratios when analyzing a company's financial statements. Financial ratios allow us to compare different companies or different periods of time for the same company and provide us with insights into a company's financial health and performance.

We then went on to discuss some of the most common financial ratios and what they mean. We began with liquidity ratios, which measure a company's ability to pay its short-term debts. We discussed the current ratio, which measures a company's ability to pay its debts with its current assets, and the quick ratio, which measures a company's ability to pay its debts with its most liquid assets. We explained that a ratio of 1 or greater is considered good for both of these ratios.

Next, we explored efficiency ratios, which measure how quickly a company is selling its inventory and collecting payments from its customers. We discussed the inventory turnover ratio, which measures how quickly a company is selling its inventory, and the accounts receivable turnover ratio, which measures how quickly a company is collecting payments from its customers. We explained that a higher ratio is generally better for both of these ratios.

We then moved on to profitability ratios, which measure a company's profitability. We discussed the gross profit margin, which measures how much profit a company is making after deducting the cost of goods sold, and the net profit margin, which measures how much profit a company is making after deducting all expenses, including taxes. We explained that a higher ratio is generally better for both of these ratios.

Finally, we discussed solvency ratios, which measure a company's ability to pay its debts. We discussed the debt-to-equity ratio, which measures how much a company is relying on debt versus equity to finance its operations, and the interest coverage ratio, which measures a company's ability to pay its interest expenses on its debt. We explained that a lower ratio is generally better for the debt-to-equity ratio, while a higher ratio is generally better for the interest coverage ratio.

Throughout the episode, we used practical examples to illustrate each financial ratio. For instance, we explained that if a company has current assets of $200,000 and current liabilities of $100,000, their current ratio would be 2:1. We also explained that if a company has $5 million in revenue, $3 million in cost of goods sold, and $1 million in operating expenses, their net profit margin would be 20%.

We thought capital markets are not for everyone. Sometimes it is not out of ignorance but lack of exposure and people telling us not to because of their own fear. Stock markets are for the elites or for the privileged only, but we beg to differ. The beauty and the beast, the bold and beautify, and the young and old can invest. We are from different generations but Clever Mpofu is with us investing on the Zimbabwe Stock Exchange. What is stopping you?

From being a platform for the elites only, Stock markets were also believed to be filled with testosterone. Despite the gender gap, women are now participating in stock markets and this interview is evidence of such a fact. Thembi from Namibia finds herself in South Africa mainly through a desire to learn. She learnt more and ended up on the Johannesburg Stock Exchange. Fortune favours only the bold. She is now one of the people in Namibia through her business who advocate for financial inclusion and to increase financial literacy content. Well Listen to this episode for more.

We acknowledge that to invest requires money, and that is one of the reasons we get from people. "Where do you think I get the money to do all that," they say. Investing is a strategy to get to financial independence and getting the money to invest is also a strategy. In this episode we talk about some of the areas where you can get the money effortlessly. Please note we didn't exhaust all the avenues. Can you invest from your salary? Can you invest from specified or planned savings? Can you invest from borrowed money? Can you invest from money you didn't use to buy a snack or bundles? Can you invest the money using part of your per diem? Well, if one of the questions gave you another, just know you can invest ☺️

Many Africans work hand to mouth. That is just what it is, some end up retiring with nothing. Many folks end up relocating from cities to rural areas where they just suffer from geriatric destitution. We see that in our families or communities, but there are avenues where we can explore to break the chain. We learn and earn from their mistakes. Investing while one is still young and active can help with that. Many African countries have Stock Markets. Do you have a stock Market in your country? Well, one can buy shares of companies on stock markets, hold them till they retire and use the money afterwards. This episode shares some real life stories from individuals who were victims and another who was saved by the HERO. Let's drive financial inclusion in Africa, let us deal with our personal Finances, let us invest. It will end in wealth☺️