Stocks With Low Correlation to the S&P 500, Are Upward Trending and Pay a Dividend

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 |  Includes: BMR, BMY, DTE, GAS, GIS, K, LLY, LNCR, PEP, PGR
by: Richard Shaw

We scanned 100% of the stock and equity funds listed on the NASDAQ and NSYE as of 2011/05/02 for multiple criteria over the past 52-weeks in search of securities that have a correlation of 0.60 or less with the S&P 500 index, positive linear regression slope over 1, 3, 6 and 12 months, and have a current dividend yield greater than zero.

There were 11 stocks that passed that filter:

  • K: Kellog
  • AGL: AGL Resources
  • BMR: Biomed Realty REIT
  • BMY: Bristol Myers Squib
  • DTE: DTE Energy
  • LLY: Eli Lilly
  • GIS: General Mills
  • LINCR: Lincare Holdings
  • PEP: Pepsico
  • PGR: Progressive

They require further study, of course, before being selected, but this may be a fruitful list for some -- and, of course, there may be stinkers in the list too. You will need to take the research to the next step if these filter criteria are of potential interest to you.

Disclosure:
We hold BMY and PEP in some but not all managed accounts as of the publication date of this article.

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