Growth is a must have but with rising growth
rates, price ratios also go up. You should be careful with stocks that have a
P/E ratio over 20 and a huge load of debt.
Today, I like to screen stocks from the consumer
goods sector, one of my favorite investment fields. 2/3 of my personal stock holdings
have a relation to the consumer area. I love those stocks especially when they are
well managed and pay great dividends.
Consumer stocks are normally characterized by
low cyclic stocks which produce solid returns on the invested capital. My
screening criteria are:
- Positive Dividend Yield
- Market Capitalization over 10 billion
- Relationship to the Consumer Goods Sector
- EPS Growth over 10 Percent for the next 5
Years
Nineteen stocks matched my criteria of which
fifteen have a current buy or better ratio. Car maker and supplier of them are dominating
the results. Those are also stocks with the highest beta ratios.