A fundamental analysis must be performed on all watch-list stocks. For this article I have chosen McDonald's (MCD), Intel (INTC), and Procter & Gamble (PG) - three well performing dividend growth stocks that could have a place in everyone's portfolio. This summary article will help the interested investor decide which stock is currently the best value. However, no matter what dividend stock is bought, even if the intentions are to keep the stock indefinitely, there must always be close monitoring.
|Dividend 5 year growth rate||9.40%||22.43%||10.75%|
|52 Week High||-4.58%||-0.35%||-5.67%|
|Altman Z Score||4.48||5.34||2.42|
|Piotroski F Score||9||7||7|
|Forward Intrinsic Value Growth||144.36%||29.48%||39.88%|
Bolded entries indicate category winners. The metrics chosen represent some of the easiest to find, yet most important in valuing a stock. One metric should never be used to value a stock, rather a basket of metrics such as these listed here. FCF is the amount of money a company has left over after paying out all expenses that can be reinvested to spur growth. A low P/FCF ratio can be a sign that a company is on the verge of a higher stock price due to increased earnings on the way.
Forward Intrisic Value is a formula that Benjamin Graham used to value stocks. An explanation of its derivation can be found here. While the value should be taken with a grain of salt, it is surely an interesting and notable metric to use in a stock screen. P/S and P/B are also quick and easy metrics used by Benjamin Graham to indicate stocks on sale.
Intel wins 8 out of 13 categories in this screen, so is therefore the best value at this point in time. The P/FCF, PEG, quick ratio, and forward intrinsic value indicate why INTC is currently the best buy - especially for a long-term portfolio.
All data was obtained using Morningstar.com, Finviz.com, Grahaminvestor.com, and Dailyfinance.com.