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.
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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