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Monday, November 4, 2024

Updating my Quality Scoring System

I use a quality scoring system modeled after David Van Knapp's Quality Snapshots, an elegant system for assessing the quality of dividend growth stocks.

This article describes my (updated) quality scoring system and how I rank dividend growth stocks by quality scores. It also explains how my system differs from Quality Snapshots.

The main purpose of using a quality scoring system is not to make final buy or sell decisions but to identify candidates for further research. The scoring system is stringent, but that doesn't mean the highest-quality stocks are always suitable for investment. Valuation must be considered after vetting a candidate's suitability through further research.

This article summarizes my quality scoring system and the modifications I've made to assess the quality of more than 700 DG stocks in Dividend Radar. I also present my ranking system, as I often write articles providing ranked lists of high-quality DG stocks. 

My ranking system uses quality scores and three tie-breaking metrics. I use the rankings of candidates only to help determine the order in which to do further research.


Thanks for reading, and happy investing!
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