The success of any plan depends on the consistent application of a simple set of rules. By documenting these rules I hope to achieve Quality, Repeatability and Consistency. As we are talking about Mr. Market here, I can only dream of Predictability.
- stock is included in the TSX60 index. Check iShares for current composition (composition may change)
- exclude Income Trust conversions.
- exclude gold miners
- select 5 bottom issues from top 6 yielding companies
- yield is > 3%
- dividend growth is > 7%
- candidates have grown dividends for >= 10 years
- payout is < 60% of FCF
- candidates PE should be in and around the 10 year average
- 5-yr CAGR + Yield = target Total Return