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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Triffin who wrote (14321)2/11/2013 8:58:29 AM
From: Triffin  Read Replies (3) | Respond to of 34328
 
SA article on a "rules based" approach to dividend growth investing

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BUY

  • Stock is on the CCC list
  • Pay out ratio under 60%
  • Chowder Rule - Yield + 5 year dividend growth rate over 12%
  • 10 year uptrend in earnings (as shown on the FAST graph)
  • Quality rating of A- or better from S&P. Originally I was planning on using the S&P star ratings, but then I was informed that this is a measure of value, where what I was really looking for was a measure of the quality of the company. The S&P Quality Rating measures stability of the earnings and the dividend, so this fits my needs better.
  • Stock appearing to be undervalued based on its FAST Graph.
David Fish (The CCC list), Chuck Carnevale (FAST Graphs) and S&P have already done a lot of hard work to evaluate dividend growth stocks. I see no reason for me to duplicate what they have already done. Plus, I'm sure they have done it a lot better then I could. By using their work and screening by the above criteria I can scan the entire 400+ stocks on the CCC list, and pick out qualifying stocks, in about an hour.

SELL - I only sell if the stock cuts, or freezes it's dividend.


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seekingalpha.com

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Here's hoping that Percy holds a patent on the "Chowder Rule"

Triff ..