Using Stock Screens-W09 - UsingStockScreens

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Using Stock Screens                                                    numbercruncher    A diversified approach to dividend investing                 Scott Adams, 06/01/09 at 7:13 PM EST WHAT ARE WE LOOKING FOR ? Let's take a look at UBS's Canadian dividend portfolio of 12 stocks. MORE ABOUT THE PORTFOLIO Last September, UBS created a portfolio of stocks that had an established dividend growth record over the past five years and were rated “buys” by UBS. The dividend stocks had to pass a couple of more tests. First, they were also selected by their true yield, which UBS strategist George Vasic defines as dividend yield minus growth in shares outstanding compounded over the past three years. Stocks that had a high yield and high net reduction in shares outstanding, or in other words, net share buybacks, score a higher true yield. Secondly, the stocks were selected to reflect their approximate weighting in the S&P/TSX composite. That meant a high representation from energy and financial stocks. Mining was underrepresented due to the lack of dividend- growth companies in the sector. HOW HAS THE PORTFOLIO PERFORMED ? The S&P/TSX composite is down about 27.9 per cent since Sept. 3, yet the average return in this portfolio is down 24.5 per cent. Generally, the non-financial and non-energy stocks, such as Canadian National, Shaw and Telus,
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This note was uploaded on 09/22/2011 for the course RSM 330 taught by Professor Stapleton during the Spring '11 term at University of Toronto- Toronto.

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Using Stock Screens-W09 - UsingStockScreens

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