We relied upon the extensive research of institutional ETF sponsors and the rules-based strategies they follow to identify individual stocks demonstrating multi-dimensional strength.
Eight stocks pass these filter criteria:
For reference, here is the 1-year performance of the ETFs we used as data sources, compared to the performance of SPY (S&P 500).
These are the 8 stocks:
All but Verizon outperformed the Vanguard Multi-Factor fund over 1 year. First Horizon nearly matched SPY's performance. All the other stocks outperformed SPY.
Five-year monthly, dividend-adjusted price charts for the 8 stocks show the stock in black, the performance relative to the S&P 500 in red, and the Dollar amount of dividends paid in the lower panel in green.
(click images to enlarge)
Here is how Morningstar describes them quantitatively:
Market-Cap / Yield / Growth
Valuation Multiples vs. Historical Averages from AAII
Operational Data from AAII
Insider and Institutional Purchases from AAII
These are the analyst views as presented by MarketScreener:
As a yield-seeking investor, with an expectation that the value factor will do OK over the long term, I may acquire some of these stocks in small size for the tactical sleeve of my portfolio.
I principally invest in funds for diversification, but sometimes tactically invest in a limited number of individual stocks in small size.
We all need a claim on the upside, but also need a solid element of protection. Above-average yield from value stocks with a modicum of momentum may provide some of that claim and some of that protection.
Disclosure: QVM has no positions in any of the securities identified in this article as of the publication date. We certify that except as cited herein, this is our work product. We received no compensation or other inducement from any party to produce this article, and are not compensated by Seeking Alpha in any way relating to this article.
General Disclaimer: This article provides opinions and information, but does not contain recommendations or personal investment advice 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 the QVM site available here.
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