Investors are always hunting for the next big stock -- the dream stock whose price increases several times over when the market finally discovers it. It's easy to look back and discover the 10 best stocks of the past decade. But I'm more interested in the tools that can help me evaluate tomorrow's greatest companies.
Motley Fool CAPS offers a variety of resources to aid Fools in finding tomorrow's leaders. Our 135,000-member community is full of investors helping each other beat the market.
We'll enlist CAPS to screen for dividend-paying companies, then get the story behind some of its more highly rated stocks. CAPS' nifty screener will help us find stocks with:
- A market cap of at least $1 billion.
- A long term debt-to-equity ratio of less than 0.5.
- A dividend yield of at least 4%.
- A price-to-earnings ratio of less than 25.
Then we'll tap the collective intelligence of our CAPS members to see whether these companies present real opportunities -- or whether the numbers fail to tell the true story.
Opinions with the numbers
Below is a sample of stocks our screen returned. You can run this screen yourself -- remember, though, that your results may differ from ours as the market changes.
Company |
Dividend Yield |
LT Debt-to-Equity Ratio |
CAPS Rating (out of 5) |
---|---|---|---|
Royal Dutch Shell |
6.1% |
0.19 |
***** |
Olin |
5.3% |
0.32 |
**** |
Merck |
4.6% |
0.40 |
**** |
Data and star rankings from CAPS.
Shell
Royal Dutch Shell joined other big oil players such as ExxonMobil, BP, and ConocoPhilips in reporting a decline in earnings recently, but many CAPS members remain bullish on the future of oil and energy in general. Members also like the company's solid dividend and see evidence it will continue to pay out generously -- while Italy's Eni cut its dividend recently, Shell recently joined Chevron
Olin
Chemical and sporting ammunition manufacturer Olin recently declared its 331st consecutive quarterly dividend, a record that earns it many a green thumbs-up in CAPS. Its Chlor Alkali division, which competes with Dow Chemical
Merck
Merck and Schering-Plough
Let 135,000 members be the jury
The collective wisdom of a huge pool of investors can help give context to a page of numbers from a stock screen -- but individual investors are still the best judges. Fools should always perform their own due diligence.
And it's easy to chime in with your own opinion: If you agree that these companies present dream opportunities -- or disagree and see more of a nightmare -- simply add your comment to the article in the box below. No one's two cents are ever turned away!