Thursday, 10 March 2011 20:12
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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

Thursday, 10 March 2011 20:09
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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

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