With savings account and bond interest rates continuing to be low, dividend paying stocks can be an attractive alternative. Most savings accounts are currently yielding under 1% so it is worth looking for dividend paying stocks that yield at least 1% while providing additional upside in the form of future EPS and DPS growth. It is important to look for strong balance sheets, reasonable valuations, and companies whose recent growth is likely to continue into the future.
We can start by using the Screener.co stock screener to find companies that are traded on US exchanges, growing, offering attractive and stable or growing dividend yields, and trading at reasonable valuations. We can also make sure their balance sheets are not burdened by debt. To do this, let's use the following criteria:
Field
|
op
|
Criteria
|
Exchange Country
|
=
|
"USA"
|
Exchange Traded On
|
!=
|
"Over The Counter"
|
Current year dividend per share estimate
|
>=
|
Current Dividend Yield-Common Stock Primary Issue, LFI-Annualized
|
Current long term growth of EPS rate
|
>=
|
0
|
Current year dividend per share estimate / Price-closing or last bid
|
>
|
0.01
|
Total Debt(I)
|
<=
|
EBITDA(A)
|
Current P/E Excluding Extraordinary Items-LTM
|
<
|
20
|
Current EV/EBITDA
|
<
|
6
|
When we launched our professional-grade global stock screener into free beta, we created a simple screen to identify attractively valued technology companies that we could compare to other well known tech companies.
Specifically, we were looking for companies that met the following criteria:
Field |
Operator |
Condition |
Reasoning |
Sector |
= |
“Technology” |
Limit scope to tech sector |
Market Capitalization |
> |
$10,000,000 |
Remove micro-cap companies |
Total Revenue(A) / Employees |
> |
$500,000 |
Remove low-margin services and manufacturing companies |
Net Income(I) |
> |
$0 |
Limit to profitable companies |
Current EV/EBITDA |
< |
10 |
Remove companies trading at high multiples |
Total Debt(I) |
< |
EBITDA(A) |
Very conservative debt threshold |
Subscribe to our RSS feed to automatically receive our latest posts in your reader.