Unfortunately, recent volatility still has not provided any attractive Stocks – waiting on WMT or MRK to get cheaper. Also looking at XLE given the weakness in Oil. But with Kinder Morgan cutting its dividend by 75% yesterday – I am staying clear of any speculative high dividend Energy plays for now (looking at you MMP, SEP, & APU).
Here are this weeks results:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| AmeriGas Partners LP | APU | $35.15 | $48.00 | $12.85 | 10.7% | 27% |
| Parker Hannifin Corp | PH | $97.52 | $120.00 | $22.48 | 2.6% | 19% |
| John Wiley & Sons Inc Class A | JW.A | $45.96 | $56.00 | $10.04 | 2.6% | 18% |
Based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 2.5
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
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