My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.
This week’s focus: Canada’s largest bank Royal Bank of Canada.
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.
Royal Bank of Canada in my Stock Screener
Royal Bank of Canada currently scores a negative Dividend Diary Score of -2.8 points.
The high Dividend Diary score isn’t the result of a particularly low stock price.
Instead, Royal Bank of Canada scores well because of its strong earnings growth and its robust earnings trend.
In addition, Canada’s largest bank steadily increased its dividend. Meanwhile, its stock yields 3.7% and the payout ratio remains well below 50%.
Conclusion: Royal Bank of Canada 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.