Stock Picks – High Dividend Stock Screen: 9-4-2015

I am now filtering out Asset Management Companies since I have no interest in investing in them – to opaque, and they rely on assets under management – which I could see diminishing over the next few years as individual investors flock to passive index funds.

Waddell & Reed Financial, Inc.  (WDR) passed the old High Dividend Stock Screen (as it did for the 52 Week Low Screen), but with the Asset Management filter in place, no companies made it thru this screen.  This continues to tell me valuations are still too high to put new money to work.

Based on the following screen:

• High Dividend Stock Screen:

1. Morningstar analysis available.
2. Dividend Yield % > = 4.
3. Dividend Growth % Past 5 Years > = 10.
4. Payout Ratio Trailing 12 Months < 75
5. Morningstar rating 4 or more stars.
6. Financial Health Grade >= B.
7. Forward P/E <= 20.