Every year I take a few attributes which may indicate a company is undervalued and run the screen multiple times a year buying very small lots weekly/monthly of those companies. This is the fourth iteration for 2022.
In May (v3) I wrote,
I was particularly excited to run this screen given all that has happened in the markets since my last screen on March 21
and then shared the following SPY Chart
Well since then the market has fallen even further
So now I get to see which, if any companies were taken down not because of their metrics but because they were being thrown out with the rest of the market.
2022 Dividend Growth Screen
In January I gave myself the following parameters for 2022:
- The company must have increased its dividend for at least 15 years; and
- Price to Earnings under 15; and
- Price to Free Cash Flow under 20; and
- Earnings per share positive for past 5 years; and
- Sales growth positive for past 5 years; and
- Payout Ratio under 30%
I cross reference the above screen (312) with the Dividend Champion list and part of the Dividend Contenders list updated every Friday by Dividend Radar (240 all together). This left me with the following 25 companies
Before I started this process I was hoping that I would have some larger cap positions already started to add to. I have positions in the following companies:
- ADM
- CB
- CINF
- EBTC
- ORI
- RBCAA
- WLK
- THFF
For the next few months I will be adding to CB and ADM.
