I’ve been on the record a lot this year talking about how, if you’re going to pursue a high yield dividend strategy, you should consider adding a valuation screen and or a quality screen. Someone asked me about some basic quality factors so I thought I’d list a few below across profitability, leverage, and efficiency:
ROA
Low Accruals
Low earnings volatility
Dividend increase announcement
Change in Debt/Assets
Change in Current Ratio
Low Debt/Equity
High interest coverage
Change in margins
Margin growth & stability
