Analyst estimates

Q: Where should I look for estimates of various companies’ upcoming earnings? — L.R., Carson City, Nev.

A: You’ll find analysts’ projected earnings at sites such as Yahoo Finance. (Look up companies via the “Quote Lookup” search box, then click on “Analysis” on the company’s data page.) But don’t put too much importance on the numbers you see there.

Remember that estimates are just that — estimates. Very often, they’re partly or largely based on guidance and information from the company itself. So a company could lowball its guidance, making it easier to exceed expectations when reporting results.

Publicly traded companies in the United States report on their performance and financial health in quarterly reports (“10-Qs”) and an annual report (a “10-K,” providing a much deeper dive). Instead of focusing on analysts’ estimates, review each report closely yourself, noting trends, growth rates and any red flags you might see (such as surging debt).

Also check each company’s “investor relations” page: Many companies hold conference calls on their results each quarter.

Q: I have holdings in several dividend-paying stocks, with dividend yields ranging from around 3 percent to 8 percent. The companies all seem to be performing well, so I’m thinking of selling the low-yielders and buying more of the high-yielders. Should I? — M.C., Sioux Falls, S.D.

A: Don’t put too many eggs in too few baskets. Even seemingly solid companies can surprise you with bad news and dividend cuts.

Also, consider dividend growth rates. If you plan to hold these shares for many years, the companies with low current yields might be growing rapidly and might increase their payouts substantially in coming years, eventually paying more in dividends than the current high-yielders are paying.