We continue with examples how to use the marketchameleon stock screener to narrow down potential candidates.
How do you screen for Dividend Aristocrats?
We gave an example screen for dividend aristocrat stocks that pay a dividend yield above 3%, increased their dividends at least 3 times in the last 3 years and did not have any decrease in the dividend amount in the last 3 years.
How do you screen for stocks with positive alpha?
The goal of this screen is to find stocks that have been outperforming the market. We used several filters to find stocks that have been outperforming the SPY ETF (S&P 500 Benchmark). We filtered for stocks that outperformed the market on a 2 week, 3 month and 6 month basis. We also used filters to find stocks that outperform the market on an average daily basis. This included stocks that were up more frequently than the rest of the market and had on average better daily returns. We also used the standard deviations of the returns to find stocks that performed better on average daily basis divided by the unit of risk.