Screening the market for investment ideas is a common way to identify potential portfolio candidates. A screening process can also keep some of the emotion out of investing by keeping one focussed on quantitative, or financial metrics.
Recently I conducted a screen of the Top 100 Industrial companies listed on the ASX in a search for appealing income stocks that weren't the 'usual suspects', namely the banks or Telstra Corporation Ltd (ASX: TLS).
Amongst the criteria I imposed on the screen was a growing stream of past dividends paid, a consensus forecast for future dividend growth and a history of full franking to dividends. (source: CommSec)
Here are three stocks which met my criteria and could be worthy of further analysis.
- ASX Ltd (ASX: ASX) – Dividends totalling 200 cents per share are forecast to be paid in financial year (FY) 2017. With the stock trading at $45.28, the forecast dividend yield is an attractive 4.4%.
- IOOF Holdings Limited (ASX: IFL) – Dividends totalling 55 cents per share are forecast to be paid in FY 2017. With the stock trading at $8.31, the forecast dividend yield is an attractive 6.6%.
- Tatts Group Limited (ASX: TTS) – Dividends totalling 18 cents per share are forecast to be paid in FY 2017. With the stock trading at $3.93, the forecast dividend yield is an attractive 4.6%.
