New Highest Quality Screener

After adding the new grading system to identify high quality dividend growth stocks it only seems natural to rank them by highest quality. That is, not just within each sector, but in aggregate.

So we have done just that… the new screener is called ‘Highest Quality’ and can be found under the ‘Quality’ tab on the main menu.

On this page you’ll find the highest quality dividend growth stocks sorted by Quality Score. Qualifications are based on the following 5-factor grading system where each factor is graded from 5 to 1 (5 being the best) for at maximum of 25 points.

Companies that qualified for this ‘highest quality’ list must be in one of the top two grading levels on every factor. That is, they must get 4 or 5 points on each of the five factors. A 3 on a single factor knocks a company out, except for one exception for REIT’s. REITs rarely have an economic moat so they have been given a little latitude to make the list. Rest assured that the REITs listed are the highest quality from that sector.

1. Value Line Safety (Safety, Price Stability)
2. Value Line Financial Strength (Fundamental Analysis)
3. Morningstar Economic Moat (Competitive Advantages)
4. Morningstar Stewardship (Leadership/Management)
5. Simply Safe Dividends (Dividend Safety)

I am currently working on improving the quality of my portfolio holdings and have found myself pretty much exclusively working off of this new screener. (Below is a sample screenshot of the top of the screener.)

Surprisingly with the stock market making new all-time highs each week I have been able to find several high quality gems trading at or below fair value. Such as: General Dynamics (GD), Home Depot (HD, Texas Instruments (TXN), and Starbucks (SBUX), all of which I have recently added shares or initiated new positions. It is truly a “market of stocks” more so than a stock market.

Filed in: Dividend Growth Investing • Website Tools