Geraldine Weiss Lite Dividend Screen
A blue-chip focused screen focused on buying blue-chip stocks whose dividend yields are near the high of their historical ranges and selling when the dividend yield declines to historic lows. Geraldine Weiss was the founding editor of Investment Quality Trends - one of the longest-lived investment newsletters. According to a 2002 Forbes article, she has seven criteria in total (but the last criteria comprises a further six "blue-chips only" conditions). A stock:
1. Must be undervalued as measured by its dividend yield on a historical basis.
2. Must be a growth stock that has raised dividends at a compound annual rate of at least 10% over the past 12 years.
3. Is selling for two times book value or less.
4. Has a P/E ratio of 20-to-1 or below.
5. Has a dividend payout ratio in the 50% area (or less) to ensure dividend safety with room for growth.
6. Debt is 50% or less of total capitalization.
7. Meets all six of our Blue Chip Criteria: dividend raised five times in the last 12 years, carries an A rating from S&P, has at least 5 million shares outstanding, at least 80 institutional investors hold the stock, 25 uninterrupted years of dividends and earnings improvements in seven of the last 12 years.
While it’s difficult to replicate this screen exactly for the UK market, we’ve produced a Geraldine Weiss-lite version along similar lines. more »