My main tool for deciding which stocks to buy or sell is a stock screen which I’ve developed and refined since 2011.
It covers more than 200 FTSE All-Share companies, each of which has a ten-year unbroken record of dividend payments.
Using this stock screen is the first step towards deciding which stocks to add or remove from my defensive value portfolio, with the second step being a detailed hands-on analysis of the company.
The stock screen ranks stocks by a combination of five 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
- 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 find out exactly how each of those factors is calculated have a look at the free resources page; there are worksheets and spreadsheets where you can calculate each factor for any company.
To see what the stock screen looks like in my monthly newsletter, have a look at these sample issues.
Interactive online stock screen
A subscription to my monthly newsletter also gives you access to an online version of the stock screen.
With the online stock screen you can:
- Sort: Re-order the list of companies by dividend yield, growth rate, profitability, or any other column.
- Select: Restrict the list of stocks using your own criteria, such as FTSE 100 stocks with dividend yields above 4% and growth rates above 5%.
- Download: For experienced investors, go one step further by downloading either your selected data or the whole dataset into a spreadsheet for further analysis.
Take a look at this sample version of the online stock screen.