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 fifth iteration for 2022.
Before I even ran the screen I knew that I would only end up buying companies I have a position in and this has more to do with what is going on with the account rather than the market. Specifically, I was assigned 100 shares of MMM @ $133 and as of this post it is currently trading at about $122. My plan is to continue to sell covered calls against it until they are assigned back at or near $133. Since I have about $13,300 of capital tied up with MMM, and purchases are going to be significantly smaller for the foreseeable future. As such, it is easier just to add tiny bits to established positions.
Nonetheless I ran the same screen I have for all of 2022.
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 (293) with the Dividend Champion list and part of the Dividend Contenders list updated every Friday by Dividend Radar (238 all together). This left me with the following companies:
- EBTC Enterprise Bancorp, Inc.
- EXPD Expeditors International of Washington, Inc.
- NUE Nucor Corporation
- ORI Old Republic International Corporation
- OZK Bank OZK
- SEIC SEI Investments Company
- SRCE 1st Source Corporation
- THFF First Financial Corporation
- UMBF UMB Financial Corporation
- XOM Exxon Mobil Corporation
- EVR Evercore Inc.
- GL Globe Life Inc.
- WSM Williams-Sonoma, Inc.
- AMP Ameriprise Financial, Inc.
- AEL American Equity Investment Life Holding Company
- RHI Robert Half International Inc.
- WLK Westlake Corporation
- TRV The Travelers Companies, Inc.
- LARK Landmark Bancorp, Inc.
- ALRS Alerus Financial Corporation
- RBCAA Republic Bancorp, Inc.
I have positions in the following companies:
Until I get rid of my assigned position of MMM, I am going to be purchasing the above companies in different amounts.