March's Best And Worst 15 CCC Stocks With Market Caps Greater Than $20 Billion And Yield Greater Than 2%
The Dugan Scoring System is a tool to identify the overall quality of CCC companies. I believe there is a strong correlation between Dugan Scores and the quality of individual stocks. Those companies' stocks earning high Dugan Scores are high quality stocks which should produce better investing results, going forward, than otherwise would be attained by simply filtering for desired characteristics. This proved true in 2015, the 3 different challenges done during 2016, the results of which can be found here and so far in 2017 ( found here).
In this context, highest quality means companies which have:
STRONG CURRENT CONDITIONS, as exemplified by: great value as measured by relative Graham number, low payout ratio, low debt/equity ratio and high most recent dividend increase %. E XCELLENT FUTURE PROSPECTS, as exemplified by: high EPS growth forecasts for this year, next year and 5 years out, and excellent dividend growth histories.
The Dugan Scoring System isn't a popularity contest. It is a disciplined, systematic and dispassionate approach that evaluates each CCC stock based on a wide variety of investment criteria from four broad categories: Risk, Value, Past Performance and Future Performance Expectations.
So, the purpose of the scoring system is to determine the all-around quality of a stock for buying, holding or selling purposes.
But, no stocks, like no people, are perfect. Even high quality and high scoring stocks have weaknesses, the same as low... Read more