Jan 25
Dividend Aristocrats
The table below contains eight dividend stocks screened from over 9,000 companies. Not only must the company show increasing dividends, but it must past tight screens for cash-flow, free-cash-flow, price/book, and price/earnings ratio standards.
While we use ETFs to build the core of our portfolios, we will sprinkle in a few stocks to increase diversity and lower portfolio risk. The above eight stocks are potential candidates to use in such a portfolio construction process. Each investor needs to do their own research as stock selection is such a difficult, and frequently losing process.
As pointed out many times on this blog, investors who build their portfolios in a stock by stock process, generally fall behind the market when it comes to performance. The vast majority of investors do not know they are falling behind the broad market as they do not know how to perform a proper portfolio review, or they do not have the tools available to measure portfolio returns and portfolio risk. Premium subscribers have access to these tools. Whether they use them is another question. It does require learning how to use the TLH spreadsheet and keeping it current. Instructions are available.
Premium subscription is available for $6.99 per month.
January 27th, 2010 at 8:11 am
Lowell,
What stock screener do you use?
January 27th, 2010 at 11:54 am
I use the American Association of Individual Investors (AAII) “Stock Investor Pro” software. It is not inexpensive at $198 per year for monthly updates. That is the member price. Fortunately, I am a Life Member of AAII.
I’m debating whether or not to renew my subscription as I don’t use the software for much more than locating dividend paying stocks. If I relied entirely on stocks for building a portfolio, I would not be without SIP as it is the best database one can find for the small investor.
Lowell