This Watch List Update is now issued weekly, usually on Fridays. This is my compilation from this past week.
Hindsight can be 20/20, foresight not so much.v
My expectations for the #HYHRD (High Yield High Return Dividend) Portfolio:
I target a minimum 20% annual return on stock price *and* a minimum 5% dividend yield.
I can’t always hit that, but those are my targets.
Sometimes I hit my targets, too; some I exceed by a little, and some by a lot.
UPDATE: Once again, I am experimenting with some changes to the screening. Results are listed below as ‘extended’ screens. You can see the results would/will/might be quite different. More as it develops…
Lot’s to do, so let’s get to it.
Last Week’s screening watch Lists;
I *try* to screen the morning before the market opens each day, and then compile the results and post on Friday.
Stock Screening (old method)
I use 4 FREE stock screeners; barchart.com, finviz.com, fidelity.com, and sharebuilder.com.
My basic initial screening criteria; I look for a 7% dividend yield and a 30% annual return. I ‘weed out’ results that aren’t quite “up to snuff” in my opinion.
The barchart and finviz screens are sometimes reasonably reliable, but need to be checked from time to time because I found they both can be quite prone to errors at times thereby giving incorrect results. These errors, once detected and compensated for, do not detract significantly enough from the overall reliability of these 2 screens, based on the criteria I am using.
I’ve added Exchanges (NYSE, Nasdaq, AMEX), and Moving Averages (5 Day over 20 Day, 20 over 50, 50 over 100, and 100 over 200), along with my basic criteria to the barchart screen.
The finviz screen adds Price above SMA20, SMA50, and SMA200, and USA only.
The fidelity screen is the least forgiving and probably most ‘accurate’, and I place quite a bit of trust in it’s results, or lack thereof. I am finding the results produced by the fidelity screen follow the criteria even more closely than either barchart or finviz. What this means is that this screen is almost ‘perfect’, which may or may not be a good thing. I added; Exchange Is One Of (AMEX, NASDAQ, NYSE), and Price Performance (52 Wk, 13Wk, 4Wk, 5 Days) Is highest/lowest % in market (Highest 20%).
The sharebuilder screen is now more closely aligned with my 2 basic criteria, and I have added Price Performance (4 Week More Than Or Equal To 5%, 13 Week More Than Or Equal To 10%, and 26 Week More Than Or Equal To 20%) to my basic criteria. I recently added; Exchange (NYSE, NASDAQ, NYSE Mkt(AMEX)) and Automatic Investing (Eligible).
Stock Screening (new method)
I use 1 FREE stock screener; fidelity.com.
The fidelity screen is the least forgiving and probably most ‘accurate’, and I place quite a bit of trust in it’s results, or lack thereof. I am finding the results produced by the fidelity screen follow the criteria even more closely than any other screen. What this means is that this screen is almost ‘perfect’, which may or may not be a good thing. I look for; Dividend Yield (Annualized) Is highest/lowest % in industry (Highest 20%), Security Type Is One Of: Common Stock, Common Stock (REIT), Price Performance (52 Wk, 13Wk, 4Wk, 5 Days) Is highest/lowest % in industry (Highest 40%), Exchange is One Of (AMEX, NASDAQ, NYSE), Company Headquarters Location Is United States of America, (and Equity Summary Score from StarMine Very Bullish (9.1 – 10.0).
There’s other criteria that I use, and that further limits the number of stocks that will pass each screen. I believe that all of this criteria, when considered together, yields ‘higher quality’ results.
I also get tips from fellow traders on StockTwits and even from articles written for Seeking Alpha, and some of those tips are quite good. Some are notoriously bad, though, so I still need to due my own own DD (That’s Due Diligence, for the n00bz!). Of course, if a stock looks bad on first pass and has never passed any of my screens, my scrutiny is rather tough, and some tips are dismissed out of hand. Still, though, some tips do make it through. YMMV!
Screen Results (stock)
Here’s this past Monday’s ‘pass list’ for each screen using the ‘old’ method (results not used);
barchart screen – ab (rejected) bx (rejected) ddc (rejected) hasi hiho (rejected) nrf srlp (rejected) wmlp (rejected)
finviz screen – bx (rejected) newt (rejected) nrf nrz nvec (rejected) wmc
fidelity screen – srlp (rejected)
sharebuilder screen – loan
Here’s this past week’s ‘pass list’ (i.e.; the ‘new’ method, starting Wednesday);
fidelity screen – ancx banc brkl has hi leg nwl sptn vlgea wmc wstg zfc
* – when screened, non-dividend stocks are rejected for obvious reasons
* – most foreign stocks, especially Chinese and Russian stocks are also rejected (i.e.; some are kept)
* – most sub-par stocks are also rejected (i.e.; some are kept), and all MLP and/or LP and/or LLC stocks are rejected
* – any stocks that pass the above initial screening and/or that aren’t summarily dismissed are put on my watch list
* – the watch list also holds closed positions to see if re-entry is warranted at some point
* – when a buy is made from this watch list, the stock is added to the ‘score’ spreadsheet