My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.
This week’s focus: German dialysis specialist Fresenius Medical Care.
My Stock Screener
I use my own stock screener to identify companies that perfectly fit my investment strategy. It determines the attractiveness of a stock based on 4 assessment criteria and finally leads to my personal screening result, which I call Dividend Diary Score.
More information about my stock screening process can be found here:
Companies with a Dividend Diary Score of
- less than -10 rarely make it on my watchlist
- between -10 and +10 qualify itself for my stock screener
- higher than +10 probably end up in my portfolio.
Fresenius Medical Care in my Stock Screener
Fresenius Medical Care currently scores a negative Dividend Diary Score of -1.2 points.
The high Dividend Diary score isn’t necessarily the result of a particularly low stock price.
Instead, Fresenius Medical Care scores well because of its strong earnings growth and its extremely robust earnings trend.
In addition, the German dialysis specialist steadily increased its dividend. Meanwhile, its stock yields 1.7% and the payout ratio remains well below 30%.
Conclusion: Fresenius Medical Care is on my Watchlist
Overall, Fresenius Medical Care is a candidate for my watchlist. However, its good screening result doesn’t justify a purchase (yet).
Yes, the dividend growth is extremely appealing and the low payout ratio still leaves plenty of room for future increases. But I don’t like the low dividend yield.
So for now, I limit myself to sell a put option here and there – especially on trading days with higher volatility and higher option premiums.
If you liked this week’s snapshot, you’re welcome to check out my stock series. Here you can find all companies that already went through my stock screener.