As a dividend-growth investor, I'm always looking for better ways to evaluate the investment quality of a stock individually as well as part of my broader portfolio. In the very beginning I used to heavily invest in stocks that were Dividend Aristocrats. But I started asking questions such as, how are these stocks performing compared to their peers. Are there stocks with better performing ROEs? What level of risk (Sharpe ratio) was taken to achieve those earnings? What is the forecasted earnings growth over the next 5 years? How many consecutive years have they increased dividends? What's their payout ratio? What are analysts thinking? Are there sectors/industries I'm overinvested or underinvested in?
So I decided to write some programs to pull free financial data from multiple sources. I consolidate all of these different data sources, cleanse and standardize the data, and came up with my own scoring metric on how to rank each stock. It does lean more towards small cap stocks which I typically avoid, but it's still informative to know what ranks high. The metrics I use for calculating my score include metrics such as Current Dividend Yield, 5-yr Forecasted Earnings Growth, ROE, Payout Ratio, Sharpe Ratio, Piotroski F Score, Dividend List Membership (Aristocrats, Champions, Kings, etc.) and it favors stocks with strong histories of paying quality dividends. I try not to give any one metric too much weight.
Pasted below is a link to a GoogleSheets spreadsheet that has the entire list. Hopefully you can use the data to make more informed investing decisions.
GoogleSheet – Investment Analysis of 8000+ Stocks
What are your thoughts on my top rankings? Any surprises? Any questions on any particular metric? Hopefully it has provided you with extra investment insight. I'm always looking for ways to refine my methodology and scoring, so any suggestions would be appreciated.
Data Disclaimer: Data from free, publicly available sources are known to have data inaccuracy issues and financial metrics/forecasts are constantly changing everyday, so please independently verify any metric you use when making investment decisions. The analysis is for information purposes only and is not to be interpreted as an investment recommendation.
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