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Magic Formula Dividend Portfolio
Published Tue, 15 Jan 2013 05:01:49 -0500 on Seeking Alpha
Since interest rates remain low as we start 2013, investors should be concerned about overpaying for yield. How can they know if the stock is overpriced by investors chasing income? We can use the Magic Formula to find attractively priced stocks in general. In a prior article, we showed that it could be restricted to picking dividend-paying stocks without detracting from its performance. Since the Magic Formula seems to hold up to limiting picks to dividend-paying stocks, this screening method was used to create a current list of the best dividend stocks to buy today. This strategy is designed for income investors who are concerned that dividend-yielding stocks are becoming too pricey. It combines a screen for dividend income with Greenblatt's screen for the best stocks trading at the cheapest values.
What is the Magic Formula?
Joel Greenblatt reported enviable annual 30.8% returns for his "Magic Formula"... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SEAGATE TECH | 56.30 | 7.9 | 7.11 | 2.52 | 4.55 | |||||||
| INTERPUBLIC GROUP OF COMPANIES | 21.11 | 12.7 | 1.66 | 0.94 | 4.35 | |||||||
| H&R BLOCK | 24.09 | 11.6 | 2.07 | 1.04 | 4.25 | |||||||
| CARDINAL HEALTH | 48.48 | 10.8 | 4.51 | 1.92 | 4.01 | |||||||
| FOOT LOCKER | 40.52 | 8.8 | 4.60 | 1.52 | 3.60 | |||||||
| OMNICOM GROUP | 80.81 | 13.6 | 5.94 | 2.60 | 3.17 | |||||||
| CISCO SYSTEMS | 49.93 | 19.2 | 2.60 | 1.40 | 2.85 | |||||||
| GARMIN | 85.52 | 22.0 | 3.88 | 2.28 | 2.72 | |||||||
| DELUXE | 48.89 | 20.4 | 2.40 | 1.20 | 2.45 | |||||||
| INTEL | 53.01 | 12.4 | 4.29 | 1.26 | 2.43 | |||||||
| LOCKHEED MARTIN | 386.63 | 18.8 | 20.52 | 8.80 | 2.31 | |||||||
| GENERAL DYNAMICS | 189.41 | 16.8 | 11.25 | 4.08 | 2.17 | |||||||
| J2 GLOBAL COMMUNICATIONS | 91.19 | 30.8 | 2.96 | 1.82 | 2.04 | |||||||
| QUEST DIAGNOSTICS | 104.97 | 19.8 | 5.31 | 2.12 | 2.03 | |||||||
| KLA-TENCOR | 149.61 | 19.8 | 7.54 | 3.00 | 2.02 | |||||||
| RAYTHEON | 197.45 | 18.2 | 10.87 | 3.77 | 1.95 | |||||||
| TIME WARNER | 92.96 | 14.0 | 6.62 | 1.61 | 1.69 | |||||||
| MANTECH INTERNATIONAL | 68.06 | 31.2 | 2.18 | 1.08 | 1.59 | |||||||
| ACCENTURE | 195.52 | 27.2 | 7.20 | 2.92 | 1.54 | |||||||
| HERBALIFE | 41.50 | 20.4 | 2.03 | 0.00 | 1.45 | |||||||
| HARRIS | 189.46 | 25.4 | 7.45 | 2.74 | 1.40 | |||||||
| MICROSOFT | 137.52 | 27.1 | 5.07 | 1.84 | 1.35 | |||||||
| L-3 COMMUNICATIONS | 246.18 | 19.2 | 12.79 | 3.40 | 1.34 | |||||||
| NEVSUN RESOURCES | 4.50 | 0.0 | 0.00 | 0.00 | 0.89 | |||||||
| CA | 44.44 | 0.0 | 0.00 | 0.00 | 0.00 | |||||||
| PDL BIOPHARMA | 2.37 | 7.9 | 0.30 | 0.00 | 0.00 |