My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.
This week’s focus: Japanese telecommunications company KDDI.
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 (also DD score or fka JiR 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.
KDDI in my Stock Screener
KDDI currently scores a Dividend Diary score of 5.6 bonus points.
The high Dividend Diary score isn’t the result of a particularly low stock price.
Instead, KDDI scores well because of its very strong earnings growth and its extremely robust earnings trend.
In addition, the Japanese telecommunications company steadily increased its dividend. Meanwhile, KDDI’s stock yields 3.5%. Nevertheless, the payout ratio remains well below 50%.
Conclusion: KDDI is on my Watchlist
Overall, KDDI is a clear candidate for my watchlist. However, its good screening result doesn’t justify a purchase (yet).
Usually, I would start to sell put options now. However, I never wrote options on Japanese stocks before. Therefore, I will continue to watch the stock price and react if there is a significant price correction.
If you liked this week’s snapshot, you’re also welcome to have a look at my stock series. Here you can find all companies that already went through my stock screener.