Two Yield Screens Worth A Review
Businessweeks' Michael Kaye, CFA has written two reports on dividend paying stocks. Kaye, is a CFA, which indicates that he knows his way around a company's financial rations as well as the yield curve, which is important now that it is inverted, with all that suggests.
Kaye's first report is just the kind of thing we look to do here at the Hoe. He focused on high yielding stocks with solid finacial ratios that ranked high on S & P's Fair Value screening, which amounts to a sorting out stocks that trade at a discount to the current market overall. The screen rates elements of each company's intrinsic value, such as the quality of earnings, growth rates, return on equity and price to book value. Next, Kaye screened for stocks yielding more than 7%, which is just the kind of thing we look for at The Yield Hoe, as well as, companies that pay no more than 70% of earnings out in yield. Stocks include CDL, IMH, RIN and PCU (a Yield Hoe favorite).
The second report screens for moderatly high yielding stocks with a measure of safety to their divdends based on the overall S & P ratings, and their above average historic dividend growth. The idea that dividend growth is the best measure of safety to the dividend leaves us a little cold. Nonetheless, stocks here include BAC, BOH, C, NXL and PFE
Kaye's first report is just the kind of thing we look to do here at the Hoe. He focused on high yielding stocks with solid finacial ratios that ranked high on S & P's Fair Value screening, which amounts to a sorting out stocks that trade at a discount to the current market overall. The screen rates elements of each company's intrinsic value, such as the quality of earnings, growth rates, return on equity and price to book value. Next, Kaye screened for stocks yielding more than 7%, which is just the kind of thing we look for at The Yield Hoe, as well as, companies that pay no more than 70% of earnings out in yield. Stocks include CDL, IMH, RIN and PCU (a Yield Hoe favorite).
The second report screens for moderatly high yielding stocks with a measure of safety to their divdends based on the overall S & P ratings, and their above average historic dividend growth. The idea that dividend growth is the best measure of safety to the dividend leaves us a little cold. Nonetheless, stocks here include BAC, BOH, C, NXL and PFE
posted by TheYieldHoe at
1:15 AM
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