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15 April 2023
By Maynard Paton
I have embarked on further ‘back to basics’ filtering to unearth a potential long-term winner for my portfolio.
This new screen identifies companies that offer a rising dividend, low valuation, robust balance sheet and decent director ownership.
The exact filter criteria I applied for this search were:
- A 5-year annualised dividend growth rate of 10%;
- A forecast 10% dividend increase;
- A trailing 12-month P/E of 15 or less;
- Net borrowings less total leases of no more than 0 (i.e. a net cash position excluding IFRS 16 lease obligations), and;
- A minimum 5% total director shareholding.
I ran the screen the other day and SharePad returned only four matches:
I selected James Latham because it traded on a remarkably low trailing P/E of 6.
SharePad shows Latham’s dividend rising nicely over time with only a couple of setbacks:
SharePad also shows the trailing P/E at its lowest since 2007:
Let’s take a closer look.