Comments on: Screening For Solid Dividend Payers

By: The Enlightened American » Looking For Solid, Growing Companies In A Recession

Mon, 29 Jun 2009 01:04:07 +0000

[...] Screening For Solid Dividend Payers [...]

By: Davy Bui

Davy Bui — Tue, 16 Jun 2009 22:08:13 +0000

Good point, Sivaram. My preferred metric would be ROIC but that option wasn’t available to me on the screen I chose to use for this post. In hindsight, the payout below industry average requirement was probably a bit problematic as well. MSFT doesn’t show up on this list and one would expect they would but the tech industry doesn’t pay high dividends.

In any case, I use screens as starting points for possible investments and for that purpose, this screen turned out OK.

Just scanning through the list, there’s at least one energy company (ECA) and a handful of pipeline companies as well as industrial concerns like TS, COL and IPHS.

By: Sivaram Velauthapillai

Sivaram Velauthapillai — Tue, 16 Jun 2009 20:59:56 +0000

I think your ROA criteria will lead to a bias toward companies with low assets (say something that relies on intellectual property, patents, etc). Companies that have large asset bases will look weaker than they are.

For instance, companies that require a large asset base, like ExxonMobil or Burlington Northern Santa Fe, won’t make your list. I’m not saying these are better companies (I actually prefer comparnies with high intangibles) but just saying…

I don’t know what’s a better metric. I use ROE but that has its own problems (debt boosts ROE.)

By: Davy Bui

Davy Bui — Sat, 13 Jun 2009 00:29:18 +0000

F*@# me!

Link added. Thanks for the heads-up.

By: Jason

Jason — Sat, 13 Jun 2009 00:19:50 +0000

“Readers can view the results here on this spreadsheet”

Please post the link