Investing.com | Nov 04, 2023 04:00
InvestingPro offers a sophisticated platform for conducting comprehensive fundamental analyses of companies worldwide. Among its array of functions, the stock scanner stands out, allowing users to select companies using a wide variety of financial indicators.
Furthermore, the platform provides pre-designed strategies tailored to cater to the diverse needs of investors. One such strategy is the "I Dream of Dividends," designed to identify companies offering both substantial dividends and a relatively high level of income and return on invested capital.
This particular selection approach often leads to the inclusion of robust and well-established defensive brands in the market. These companies can serve as valuable additions to investors' portfolios during economic downturns, potentially offering opportunities in a market characterized by stock price discounts.
Here's how you can harness the power of the strategy on InvestingPro:
Simply go to the scanner section, then scroll within the available strategies and select the 'I Dream of Dividends' strategy we discussed in this article.
Source: InvestingPro
The described "I Dream of Dividends" strategy relies on four key criteria for selecting specific companies:
Source: InvestingPro
For potential modifications or additional criteria, you could consider indicators like net income, market capitalization, or price-to-book (P/B) value. However, it's essential to strike a balance when adding criteria.
Being overly restrictive can limit the pool of eligible companies, so careful consideration should be given to how additional criteria may affect the selection process.
Once the selection process is completed, the InvestingPro tool presents the chosen companies in a tabular format, listing those that meet the established criteria within the specified geographic region.
Notably, one standout indicator among the many available is the "fair value." This metric, determined through a combination of diverse financial models and analyst recommendations, offers insights into whether a company is overvalued or undervalued, often with a specific target price provided.
Moreover, to simplify the process and accommodate users of all levels, the scanner categorizes the vast amount of data into six fundamental categories, as illustrated below:
This user-friendly breakdown ensures that even novice traders can readily engage in fundamental analysis, leveraging the capabilities offered by the InvestingPro tool.
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With InvestingPro , you can conveniently access a single-page view of complete and comprehensive information about different companies all in one place, eliminating the need to gather data from multiple sources and saving you time and effort.
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice or recommendation to invest as such and is in no way intended to encourage the purchase of assets. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and associated risk remains with the investor.
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Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
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