Runnin' With The Big Dogs?? Woof!

Dec. 14, 2012 12:13 PM ETMRK, PFE, JNJ
Joseph P. Porter's Blog
1.25K Followers
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Would you believe that, of the 10 "Dogs of the Dow" that started 2012, only three (yes, 3) at this time satisfy my criteria for minimally acceptable investment:

THE CRITERIA:

ROE > 1

ROA > 1

ROI > 1

Operational Margin > 15%

Quick Ratio > 1

Performance YTD > 0

Payout Ratio < 100

THE COMPANIES?

Merck

Pfizer

Johnson & Johnson

I'm experimenting with the use of Operational Margin, rather than Net Profit. Certainly seems to weed out the riff-raff.

It is interesting to note that the companies that satisfy my criteria are all in the healthcare sector. With Obamacare being the way things are and shall be for the next four years, maybe this is the sector to invest in.

Disclosure: I am long PFE.

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