UK Value Investor

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Defensive Value Stock Screen

Stock screens are a great way to avoid having to analyse and understand the 600 or so companies in the FTSE All-Share.

If you’re looking for companies with an unbroken ten-year record of dividend payments (as I am) then that’s great; a stock screen can just filter out the 300 or so companies that don’t meet that standard.

The UK Value Investor stock screen does exactly that, as well as applying a range of other filters.

And once the filters are applied, it sorts the remaining companies (typically around 200 of them) by a handful of important factors that I and many other income-focused value investors are interested in.

The main factors that go into the stock screen’s unique ranking system are:

  1. Growth Rate – Measuring growth across revenues, capital employed and dividends per share over ten years
  2. Growth Quality – Measuring the consistency and sustainability of revenue, earnings and dividend growth over ten years
  3. Profitability – Measuring net return on capital employed (including leased capital such as retail stores)
  4. Debt Ratio: The ratio of ten-year average earnings to total debts (borrowings and lease liabilities)
  5. PE10 ratio – The ratio of share price to ten-year average earnings
  6. PD10 ratio – The ratio of share price to ten-year average dividends

If you want to know the rationale behind each of these factors, have a look at the underlying 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.

You can find the latest stock screen results in each issue of my monthly newsletter.

After 13 years of writing about UK stocks on this website I have now moved to my new home at:

UKDividendStocks.com

Please head over to the new site.

Thank you

John Kingham

RSS UK Dividend Stocks Blog

  • Top 40 High-Yield Blue-Chip UK Stocks: Spring 2023
  • UK Housing Market Valuation and Forecast for 2023
  • S&P 500 CAPE Valuation and Forecast for 2023
  • FTSE 250 CAPE Valuation and Forecast for 2023
  • FTSE 100 CAPE Valuation and Forecast for 2023
  • UK Dividend Stocks Portfolio: 2022 Year-End Review
  • Is WH Smith an Attractive Dividend Stock?
  • Recessions Are an Opportunity as Much as a Threat
  • Is RM a Good Choice for Dividend Investors?
  • Is GSK a Good Choice for Dividend Investors?

My Book

  • The Defensive Value Investor
  • "I believe this book is among the best value investing books, if not the best."
    Amazon.com review
  • "Definitely worth a look for any stock-picking private investor"
    Dr Matthew Partridge, MoneyWeek
Disclaimer: This website provides information for educational purposes only. It does not provide financial advice or recommendations to buy or sell any investment. Do your own research or ask a regulated financial advisor before making any investment decisions.

New Website

After 13 years of writing about UK stocks on this website I have now moved to my new home at:

UKDividendStocks.com

Please head over to the new site.

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The purpose of this website is to provide information and education to investors. It does not provide financial advice or recommendations to buy or sell specific investments and is therefore not regulated by the Financial Conduct Authority. If you need financial advice you should consult with a regulated financial adviser.

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