How to choose best companies share for best earnings, Wes 7 way to choose share

 Wes's 7 Ways to Choose Shares:

 

1. Shares measured based on the history of dividend yield must be undervalued.

2. Shares must be a 'growth stock'. It should have achieved a dividend growth rate of 12% per annum for 12 years.

3. The share price should be 2 times or less than its book value.

4. The share price-to-earnings ratio (PE ratio) should be less than 20.

5. The dividend payout ratio should be 50%.

6. The company's debt should be 50% or less of the market value.

7. Shares must meet six Blue Chip criteria. They are as follows:

- Dividend rate should have been increased at least 5 times in the last 12 years.

- Must have an 'A' rating.

- There should be a minimum of 5 million shares.

- Must have at least 80 institutional investors.

- Must have been distributing dividends continuously for the last 25 years.

- Out of the last 12 years, at least 7 years should have improved profits.