How do you usually identify stocks to buy? One of the method I use is via a stock screener. With the death of Google finance stock screener, I couldn’t find a good decent one and of course for free! Recently, I found an excellent stock screen at Fundsupermart (FSMOne) website that fit my needs. The user interface is clean, sleek, easy to use and most important of all, it has all the basic criterias that I can set and filter.
Below are the basic criteria that you can do set with the Fundsupermart stock screener.
As a dividend investor, one criteria that I will definitely like to have is the dividend yield. I usually screen for stocks that gives a dividend yield of between 5% to 10%. We need to be careful with stocks that provides extremely high dividend yield and do our due diligence to further investigate the company that it is not borrowing money to pay out dividends.
P/E Ratio (Price to Earnings Ratio)
We also refer P/E ratio as Price to Earnings ratio. It is calculated by dividing the current market price of the stock by its earning per share (EPS). It also means how much investors are willing to pay per share of the company. My preferred settings are stocks less than 20x earnings.
P/B Ratio (Price to Book Ratio)
We refer P/B ratio as Price to Book ratio. P/B ratio is calculated by dividing the price per share by book value per share. A value lower than 1 is considered as a good P/B ratio and could mean that the stock is undervalued. My preferred P/B Ratio is below 3.
Market Capitalization USD (in millions)
If you have followed my previous stock analysis of companies, one of the criteria I often looked at is the market capitalization of the company. Market capitalization refers to the total value of all a company’s shares of stock. I currently look at companies with market capitalization above one billion.
Trying Out the Stock Screener
Here are the values that I entered into the stock screener.
Below are the results I got. Which stock has caught your eye?