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.