After the risky selection last week of FirstGroup, this week I am going to use our tools to pick up some big, safe companies with hopefully big safe yields. Additionally, we will look for high growth plays, where the dividend is expected to grow by more than 20%
My selection criteria is:
- Annualised dividend yield at the time of the search of >4%
- Market Capitalisation > 2 Billion (£, euro or $)
- Dividend Cover > 2
- Consecutive annual dividend increases for more than 5 years
- A forecast dividend increase for the coming year of > 10%
In spite of our large European coverage and all the talk of high yielding Euro dividend stocks not one European stock met our critieria. There are currently a lot of high yielding European stocks but most of them fail on the Consecutive annual dividend increases criteria.
Here is the list of those that did meet the criteria (in yield order)
Cobham, Inmarsat, William Morrison, Sage, Aberdeen Asset Management, Amec, IMI, Wal Mart.
Of these, the only one that I would steer clear of is William Morrison Supermarkets which does seem to be losing the battle with Tesco, Sainsbury, Asda and the cheap supermarkets like Aldi, Lidl, etc.
Finally, I will use the tool to pick out some high growth dividend stocks and here my criteria is forecast dividend growth over 20% and an annualised dividend yield at the time of selection >5%
The list reveals much maligned Man Group, Admiral, Total, Renault, Evraz, PhotoMe, Credit Suisse and BNP Paribas. My favoured pick here would be Photo-me international looks like a steal with so much cash on the balance sheet and a very good recent trading statment.
