I’m planning on getting rid of ARCP pretty soon which should give me around 900$ to invest plus the 800$ or so balance that I have in my RRSP brokerage account right now.
Since I haven’t been following the market a lot in the recent months, I thought it was time for me to make the plunge and update my screener with fresh data.
Here are the results of the following screen :
– US dividend growth stocks
– 5 years of consecutive dividend raise
– minimum yield 3%
– maximum payout ratio 60%
– maximum p/e 20 (as of march 31st 2015)
– maximum debt/equity of 2 to get broader results
– maximum beta (5 years average) of 2
– minimum ROE of 10
– minimum dividend growth rate of 3 all across the board
Which stocks out there are interesting?
I’d like to initate a new position in a stock I don’t own.
I’ll let Exxon and Chevron aside since I already own them and I feel that I’m fully allocated in oil stocks for now.
I’ll also let Royal Bank on the sideline because my plan is to own it in my Canadian Tax Free Saving Account. In my RRSP I want to be mostly allocated into US stocks since that’s the only way for me to get a tax advantage on those dividends and my maximal authorized contribution is capped every year to 18% of my salary minus my pension plan contribution which usually takes almost all of the authorized amount. So I only still have 40k left in available authorized contributions in that account plus roughly 3k per year in future authorized contributions.
I’ll have to dig a little more before making a move but out of those Emerson has popped out of the list. To my own knowledge it hasn’t been on sale for a while and while it is a dull company, if I’m not mistaken, it is an interesting pick for a dividend growth investor like me.
Baxter could also be worth some extra digging too but I remember that they were supposed to do a spinoff of some sort in 2015. I didn’t do any research on that but it’s worth taking a look at. Is the spinoff already done?
Microsoft is a classic and it’s tempting to initiate a position there too…
There are also a lot of names I never heard of… That’s what I like with that screener. It forces me to discover new dividend growth stocks I would never think about. By filtering through the extensive and great David’s Fish list, I could have found all of those stocks but there are so many data in his spreadsheet that I eventually always get tired or lost ahah :). This screener is simplifying my task and respecting my brain limitations! 🙂
Since it’s not a huge list, I’ll take the time to filter through all of these stocks and do some extra digging before making a move to find the best value for the moment. I might also extend the p/e criteria to 23 to grab extra stocks and avoid letting recent sales on the table, after all the data are as of march 31st and a lot can happen in a month.
But I have Emerson in my mind… What are your thoughts about that stock?
What do you have on your watch list for may?