A stock screen is a quick and efficient way to narrow down the list of potential investments from hundreds to perhaps one or two dozen.
The UK Value Investor stock screen covers around 200 FTSE All-Share companies, all of which have a ten-year unbroken record of dividend payments.
This screen is where I start every investment decision. It’s the first step towards deciding which stocks I should add to or remove from the model portfolio (the second step is a detailed analysis based on a checklist of key questions).
The stock screen ranks stocks in order from best to worst, using a combination of six factors:
- Growth Rate – How fast a company has grown over ten years
- Growth Quality – How consistently a company has grown over ten years
- Profitability – How profitable a company has been over ten years
- Debt Ratio: How much debt the company has compared to its cyclically-adjusted earnings
- PE10 ratio – The share price to ten-year average earnings ratio
- PD10 ratio – The share price to ten-year average dividend ratio
If you want to know the rationale behind each of these factors, have a look at the investment strategy.
If you want to see exactly how each of those factors is calculated, have a look at the free resources page. It contains spreadsheets which will help you calculate each factor for any company.
Each issue of the UK Value Investor newsletter contains the latest stock screen, which subscribers can use to help them select their next investment (take a look at these sample issues).
Interactive online stock screen
UK Value Investor also gives you access to an interactive version of the screen where you can sort, select and even download the full dataset if you wish: