My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.
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.
Omnicom in my Stock Screener
Omnicom currently scores a positive Dividend Diary Score of +1.9 points.
The high Dividend Diary score isn’t the result of a particularly low stock price.
Instead, Omnicom scores well because of its strong earnings growth and its extremely robust earnings trend.
In addition, the US advertising group almost steadily increased its dividend. The only exception was 2009, when the payout was kept constant. Meanwhile, its dividend yield is 3.0% and the payout ratio remains well below 50%.
Conclusion: Omnicom is on my Watchlist
However, its share price is currently still a little bit too high for my risk appetite. I might limit myself to sell a put option with a strike price close to my current target price.
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.