kpbarbee's  Instablog

kpbarbee
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Architect and entertainment design specialist; investor since age 12.
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  • Best Dividend Stocks For Growth, Value, And Safety 0 comments
    Jul 28, 2013 5:36 AM | about stocks: HRL, XOM, INTC, SXL, CVX, GPC, GWW, NVO, CSL, MCD, AZN

    To find today's best dividend stocks, I searched for stocks with 10 years or more of dividend increases, PE less than 25, payout ratio less than 70%, ROE greater than 10%, and Debt/Equity ratio of less than 2.

    Growth Candidates

    To determine which candidates were adept at growth (as indicated by past performance), I ranked each stock in terms of the dividend yield, 5-year dividend growth rate, and their EPS 5 year growth rate. Dividend yield was triple weighted, other factors weighted equally. The top five growth candidates in descending order are MCD, INTC, SXL, AZN, and HCP.

    Value Candidates

    Similarly, to determine which candidates were a better value, I ranked them according to their PE ratio, PS ratio, and PB ratio, all with equal weightings. The top five value candidates (also in descending order) are SXL, CVX, XOM, CSL, and INTC.

    Safety Candidates

    To determine the safety of the stocks found in my screen, I ranked the candidates by their Debt/Equity ratio and years of increasing dividends. The top five "safe" candidates are HRL, GPC, GWW, XOM, and NVO.

    Overall Candidates

    Applying equal weighting to each of the categories above, I totaled the scores to find the five best overall candidates. They are INTC, CVX, XOM, SXL, and AZN.

    I will use these results to further investigate the stocks to determine if an investment is prudent at this time. Would love to hear comments from other dividend investors on the effectiveness of this process.

    Disclosure: I am long INTC, AZN.

    Stocks: HRL, XOM, INTC, SXL, CVX, GPC, GWW, NVO, CSL, MCD, AZN
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