You are reading my attempt at updating my recent blog posts that attempt to compare 10 of the best scoring stocks (I no longer screen or look at ETFs) I have found. What follows below is the latest iteration of this attempt to set up the ’10 Best’ comparison chart on stockcharts.com;
In my original blog post on 4/12/15 entitled “#HYHRD: Creating a ’10 Best’ Comparison chart; $LOAN $NRZ $APTS $ORC $NRF $NEWT $MHFI $WMC $MCO $CLNY” I attempted to create a ’10 Best’ list and comparison chart. You can search the blog for that and any subsequent posts using the search string “’10 Best’ Comparison chart” to see any changes that have occurred since that original post.
The original post included 6 different charts as I weeded out the worst performers and 2 screenshots of my spreadsheets; one of the ‘comparison’ list of 33 stocks, and another of my 15 current holdings. This was mainly to show the process, but I feel it is not relevant or necessary to beat that dead horse.
For brevity, this post will include just one screenshot of the comparison chart of 10 of the best stocks (IMHO), and 1 screenshot from my spreadsheets of the comparison sheet.
All LP, MLP, & LLC stocks have been removed. All ETFs/ETNs (except the one that I own) have been removed. I have replaced them with top scoring stocks from my watch list. I also placed all of my current holdings on this sheet.
I decided to stop screening for ETFs/ETNs as I was not utilizing the results, and am not currently interested in pursuing those types of investments.
I’m using my comparison spreadsheet to pick the 10 best of this lot of 33 stocks each week combining dividend yield and annual return for an annualized return figure to rank them all from ‘best’ to ‘worst’. I use my watchlist sheets to pick the best performers for this comparison.
Here’s the comparison chart from stockcharts.com;
This only tells part of the story, however, since it only considers annual return. I feel that, in order to get a fuller picture you would also need to consider dividend yield.
The end result is shown on my spreadsheet, again using figures from finviz.com and combining dividend yield and annual return for an annualized return figure to rank them all from ‘best’ to ‘worst’ (and, how many times each stock has been in each position);
You might notice the colors in the % yield, % return, and total columns. In the % yield column, anything greater than or equal to 5% is green, or if it’s less than 5% it’s yellow, or if it’s less than 0% it’s red. In the % return column, anything greater than or equal to 20% is green, or if it’s less than 20% it’s yellow, or if it’s less than 0% it’s red. In the total column, anything greater than or equal to 25% is green, or if it’s less than 25% it’s yellow, or if it’s less than 5% it’s red. (Color coding helps in making the decision to buy (green), hold (yellow), or sell (red) much easier to see at a glance.) The color code key is in the lower right corner.
It’s interesting to note that the stocks that rank in the last 9 spots on this ‘best to worst’ comparison are 9 of my 15 current holdings. I am expecting, if not outright hoping, that these stocks will eventually outperform. I also just added some of the (previously) top ranking stock (NRZ) to my portfolio after selling all of my WMC, which currently ranks 9th on this list. I sold the day after they announced their second consecutive quarterly dividend cut, for a profit approximately equal to twice the expected dividend.
Also interesting is that this list changes as their performance data changes, but that is how the markets work. That is why I am also keeping a running count of each symbol’s position in the Top 3, 2nd 3, 3rd 3, etc. This will allow me to pick out the “steady eddies” that maintain their ranking over time.
It should go without saying that this is a classic example of letting past performance influence future results, but it is merely charting past performance. There is more that needs to be done to pick stocks for addition to your (my, our) portfolio. It should also go without saying that this should not be construed as advice, because it is not. This is what I do, for my own entertainment as well as yours. Sometimes I act on it or some other nonsensical method such as an analyst’s recommendation, but you should always make your own investing decisions.
That being said; “Stay profitable, my friends!”