Snapshot of the Week: WPP

My Snapshot of the Week gives you a short summary of a stock that currently looks particularly interesting to me.

This week’s focus: British advertising group WPP.

WPP

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

WPP in my Stock Screener

WPP currently scores a positive Dividend Diary Score of +27.3 points.

This very high Dividend Diary Score is the result of a particularly low stock price.

However, WPP also scores well because of its strong earnings growth and its robust earnings trend.

In addition, the British advertising group steadily increased its dividend. The only exception is 2018, when the dividend was left unchanged.

Meanwhile, WPP’s stock yields 7.2%. Nevertheless, the payout ratio is still only slightly above 50%.

Conclusion: WPP is a Buy Candidate

With a Dividend Diary Score of 27.3 bonus points, WPP is a clear buy candidate from a quantitative point of view.

However, from a qualitative point of view, I’m not only worried about the major upheavals across the advertising industry (e.g. competition from IT giants like Google and Facebook and the big management consultancies), but also about the departure of ex-boss and founder Martin Sorrell.

That’s why I’ve shied away from initiating a position in WPP so far.

What do you think about WPP? Please let me know and leave a short comment or contact me on Facebook or Twitter!


If you liked this week’s snapshot, you’re also welcome to check out my stock series. Here you can find all companies that already went through my stock screener.

Full transparency: All of my stocks, funds, bonds and options are subject to multiple risks. However, I’m neither a financial nor an investment professional. Hence, the presented information is not to be understood as any financial advice or recommendation. I’m not liable for any losses or suffering experienced by any party. More detailed information is available here (only in German).

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