1.) Each stock must have a liability-adjusted cash flow yield* 1.5 times greater than the yield of a 10-year U.S. Treasury note.
2.) Each stock must have a return on invested capital greater than 10% (using five-year historical cash flows).
3.) Each stock must show a positive total return (including dividends) over the past 10 years.
4.) The dividend yield of the stock must be less than the liability-adjusted cash flow yield. In other words, cash flow must support the dividend.
Remember, this list is constructed using only quantitative criteria (in other words, strictly by the numbers). That said, a little color has been added to each of the companies mentioned, which are ordered from most expensive to least.
As always, model portfolios should not be treated as gospel; rather, use them as a starting point for your own research. Similarly, all investors should apply their own valuation and qualitative criteria to determine what constitutes a "good buy." Read More For the latest updates PRESS CTR + D or visit Stock Market news Today
No comments:
Post a Comment