Q: This is a follow-up questions about determining whether a company is considered growth vs income. Can I interpret what you said as being:
If the sales and EPS do not increase much, or stays the same, over many years, and the company offers a reasonable dividend then it is considered income.
On the other hand, if the sales and EPS increase steadily over several years, then it is considered growth, whether or not it offers any dividend.
And if the sales and EPS fluctuate year to year, it may be cyclical, which is a separate category.
If it does not fit into any of the above, then it is a company of that should not be considered investing in.
If the sales and EPS do not increase much, or stays the same, over many years, and the company offers a reasonable dividend then it is considered income.
On the other hand, if the sales and EPS increase steadily over several years, then it is considered growth, whether or not it offers any dividend.
And if the sales and EPS fluctuate year to year, it may be cyclical, which is a separate category.
If it does not fit into any of the above, then it is a company of that should not be considered investing in.