Geraldine Weiss Dividend Investing Model

I’m obviously a big fan of any woman who makes it in finance.

I worked in that extra male-dominated world for 22 years and ‘retired’ to build a small financial coaching business working exclusively with women.

I teach retirement planning and investing with a specific strategy loosely based on Geraldine Weiss‘ Dividend Growth Model.

Weiss’ investment strategy is to buy the top dividend paying stocks and sell when the dividends hit historical lows.

According to Weiss, companies can cheat on profits and revenues, but they can’t on dividends, which make them a safer indicator of a company’s value.

Weiss has six criteria for evaluating all stocks and another six criteria exclusively for blue-chip stocks.

Her original model from her 1988 book, Dividends Don’t Lie, is:

  1. MktCapM is >= US$ 300 million (basis year 2000) adjusted yearly
  2. Dividend growth periods >= 5x over past 12 FY
  3. Outstanding Shares for latest FQ is >= 5 million
  4. Institutional shareholders are >= 80
  5. EPS over last 12 FY increased >= 7 FY
  6. Dividend paid out >= 12 past FY
  7. Rank according to current Dividend Yield % (higher is better)

The updated and revised Blue Chip Dividend model is:

  1. MktCapM is >= US$ 300 million (basis year 2000) adjusted yearly
  2. Dividend growth periods >= 4x over past 10 FY
  3. Outstanding Shares for latest FQ is >= 5 million
  4. EPS over last 10 FY increased >= 6 FY
  5. Dividend paid out >= 10 past FY
  6. Compound annual Dividend growth rate over 10 FY >= 8%
  7. P/B is <= 2
  8. P/E is <= 20
  9. Dividend Payout Ratio long term <= 50%
  10. Latest filing total debt to total assets ratio is <= 25%
  11. Rank according to current Dividend Yield % (higher is better)

You can run these screens for free over at MeetInvest.com.

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