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

 |  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.

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

Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advise to any specific person for any particular purpose. Do your own research or obtain suitable personal advice. You are responsible for your own investment decisions. This article is presented subject to our full disclaimer found on our site available here.