The Best Quality Dividend Growth Stocks Right Now According To The Piotroski F Score

INTRODUCTION
I like to use the Piotroski F Score to analyze the quality of a company. Although it is considered more of a financial quality measure, I find that the F Score also provides other insights into the quality of a company such as how shareholder friendly the company is. This can be seen by whether the company has increased the number of shares outstanding, and whether operating cash flows and net income have grown year over year which could lead to increased dividends. We can also get a glimpse of how efficient the management team is by analyzing the return on assets, gross margins and asset turnover ratio. To me, the Piotroski F Score provides more far more detail than simply a number. In case you are not aware of what the F Score is comprised of, here is the 9 point criteria:
Profitability
Positive return on assets in the current year Positive operating cash flow in the current year Higher return on assets (ROA) in the current period compared to the ROA in the previous year Cash flow from operations are greater than ROA Leverage, Liquidity and Source of Funds
Lower ratio of long term debt to in the current period compared value in the previous year Higher current ratio this year compared to the previous year No new shares were issued in the last year Operating Efficiency
A higher gross margin compared to the previous year A higher asset turnover ratio compared to the previous year Each criterion can receive a scored of 1. The scores are then added... Read more