Because we are looking for stocks that pay dividends (in case we end up owning them) – I have added a 2.5% dividend requirement to this screen:
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Gap Inc | GPS | $31.24 | $48.00 | $16.76 | 2.84 | 34.92% |
| Emerson Electric Co | EMR | $43.58 | $62.00 | $18.42 | 4.21 | 29.71% |
| United Technologies Corp | UTX | $86.66 | $120.00 | $33.34 | 2.85 | 27.78% |
| Qualcomm Inc | QCOM | $53.68 | $70.00 | $16.32 | 3.34 | 23.31% |
| ITC Holdings Corp | ITC | $32.74 | $42.00 | $9.26 | 2.07 | 22.05% |
| Wal-Mart Stores Inc | WMT | $63.72 | $79.00 | $15.28 | 3.07 | 19.34% |
| Rockwell Automation Inc | ROK | $101.55 | $120.00 | $18.45 | 2.52 | 15.38% |
| Siemens AG ADR | SIEGY | $90.01 | $103.00 | $12.99 | 4.17 | 12.61% |
| Alliant Energy Corp | LNT | $56.92 | $61.00 | $4.08 | 3.81 | 6.69% |
Based on the following screen:
- 52 Week Low 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.
Leave a Reply