Safe stocks don’t exist because with your shares you are a part of the business and must carry all fluctuations. But there are more or less risky businesses.
Growth is your wealth driver. A growing business is a good business and makes you richer when your company employs more people and generates higher sales and incomes over a couple of years.
In order to realize a return you must care about the current price ratios. The price you pay for growth should be acceptable in order to make a good return. Normally you have to pay a higher P/E with bigger growth expectations.
Today I try to combine all three factors: Growth,
Bargains and Safeness. I like to screen dividend growth stocks with 10 to 25 years
of consecutive dividend growth by low P/E and beta ratios: The P/E should be under 15 and the
beta ratio must below 0.5.
Twelve stocks fulfilled the mentioned criteria of
which three have a buy or better rating. Insurer, banks and telecom stocks are main
contributors to the screen. Somehow strange - How banks fundamentals have changed over the recent years.
They show low debt figures and good dividends but the banks in my screen are very
low capitalized and have a greater risk.
