Friday Stock Screens: Shield of Yield

March 13, 2008

As discussed in Chapter 2 of The Disciplined Investor, stock screens can be used effectively to help search for stocks that can help to provide downside protection while positioning a portfolio for the upturn if /when markets stabilize. The fact is that the key in this environment is to look for large cap stocks paying dividends with:

  1. Low Debt
  2. PEG Ratio below 1
  3. Stable outlook
  4. High Rating

shield-of-yield-large.jpg

Stock Screener ‐ MSN MONEY
Criteria:
Market Capitalization >= 1,000,000,000
Debt to Equity Ratio <= 1
PEG Ratio Below 1
StockScouter rating >= 9
Current Dividend Yield >= 2
Price/Book Value <= 2

Definitions:
Market Capitalization: The value of a company’s outstanding shares, as measured by shares times current price.

Debt/Equity Ratio: The most recent quarter long-term debt divided by the most recent quarter common stock equity.

PEG Ratio: The price-earnings (P/E) ratio for this company has been less than its average next year’s projected earnings growth rate. For small and mid-cap stocks in particular, this is generally considered as a sign that a company may be undervalued.

StockScouter Rating: represents a balance, or trade-off, between a stock’s expected return in six months and its expected volatility en route. Expected return is derived from a weighted blend of a company’s underlying factor scores plus its place in market capitalization, sector and investment style trends. Top-rated stocks are expected to gain the most in the future with relatively less volatility.

Dividend Yield: A stock’s dividend expressed as a percentage of the share price

Price/Book Value: The latest closing price of the stock divided by the most recent quarter’s book value per share.

Results (click to enlarge)

soy-march2008-thumb.jpg

(ACAS) (CNL) (PTEN) (TRV) (WPC) (AHL) (ATN) (CCU) (CINF) (DOW) (IP) (IPCR) (PHG) (PL) (PRE) (SLF) (STD) (UTR)

Disclosure: Horowitz & Company clients may own positions in some or all of the stocks mentioned as of the date of publish.

Tags: , , , ,

Related posts

Written by Andrew Horowitz · Filed Under Screens, Stocks 

Comments

3 Responses to “Friday Stock Screens: Shield of Yield”

  1. jack langlois on March 15th, 2008 7:07 pm

    OK I do like Money for US traded stocks. But what about stocks that are traded in HK but not the US, or other markets? I can’t find any useful information on Money. I have to go to Bloomberg, or Google Finance.

  2. Awperator on July 3rd, 2008 9:22 am

    I made a quick portfolio in google finance, and this screen isn’t doing too well. It’s down ~8.45%, but then again it isnt taking into account dividends.

  3. Andrew Horowitz on July 3rd, 2008 8:17 pm

    AW:

    This screen was from March. Needs to be re-run. Did you do that…? Also, it is to be run on the MSN platform

Got something to say?