Adding Quality

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:


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