The purpose of this article is to again look at what sort of companies may be appealing for purchase during December 2020. With the vaccine-related high, we're looking at a market that's actually recovered fairly significantly. This is especially true when we look at what's happened in sectors like real estate.
As always, it's about the responsible allocation of investment capital, as best as I can see it in the market's current position today. We'll focus on 1-2 companies per sector. This allows me to mention both a grade-A quality as well as undervalued, lesser-grade companies with a potentially higher yield (yet higher risk). As the market is now, I may mention more, however, given the large number of appealing companies available to us.
This article is of particular interest to those among you who feel they need to increase their exposure to the sectors of Finance, IT/Semis, Industrials, Real Estate, and Healthcare/Pharma.
As months prior, the list will be made using my own QO system of rating stock. It divides stocks into four classes based upon universal metrics that attempt to measure the company's appeal for a dividend investor and ends in a score of 0.0-4.3, with both current valuation (opportunity) and fundamentals (quality) playing major roles.
It arrives at these scores using 14 trackable data points, including stats such as dividend safety, EPS yield, payout, earnings multiples, credit rating, dividend yield, dividend tradition, moat, and management. I'm constantly updating and developing the tool to be of more use and more precise, and I feel I've reached a point where I can comfortably base my investment decisions upon scores reached using the calculations. It, of course, comes with disclaimers I note when I make scoring and stances - everyone needs to make their own choices, after all.
Let's look
