Selecting Dividend Stocks With The Magic Formula

Every so often, MagicDiligence compiles a list of Magic Formula stocks sorted according to dividend yield, price-to-sales ratio, and price-to-book ratio for investors who like to use those metrics. The Magic Formula Investing strategy identifies stocks with a combination of high earnings yield and return on capital, aiming to find "great companies at cheap prices."

Dividend yield is a favorite metric for income investors, providing both steady, predictable returns and downside protection. With Magic Formula Investing, you buy dividend stocks that are cheap against earnings and are issued by companies that efficiently invest capital.

Source: The Street

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