In our article How to Beat the First Trust Capital Strength ETF (FTCS) and Other Large-Cap ETFs with the Capital Strength Stocks of the Russell 1000 we describe a methodology to select capital strength stocks and the ranking thereof. The table below list the top 20 selected capital strength stocks of the Russell 1000, and is updated weekly, usually on Sundays.
July 8, 2017 To view the latest top 20 selected capital strength stocks of the Russell 1000, which are updated weekly, a Gold subscription is required.
|CSCO||Cisco Systems Inc||1||$157.04||TECH||$28.22||15.65%||4.29%||1.82||3.69%||0.78||1.18|
|MO||Altria Group Inc||3||$143.07||STAPLE||$13.88||192.24%||47.69%||2.02||3.30%||1.32||0.53|
|IPG||Interpublic Group of Companies Inc. (The)||4||$9.76||DISCRETIONARY||$1.28||31.99%||34.67%||5.85||2.92%||3.64||1.05|
|EMR||Emerson Electric Co.||5||$38.78||INDUSTRIAL||$3.82||21.15%||5.61%||3.98||3.19%||2.58||1.09|
|DPS||Dr Pepper Snapple Group Inc||9||$16.60||STAPLE||$4.47||39.21%||14.18%||5.81||2.57%||3.01||0.63|
|BBY||Best Buy Co Inc||10||$16.91||DISCRETIONARY||$1.30||26.20%||23.20%||8.83||2.46%||2.1||0.86|
|CLX||Clorox Co (The)||11||$16.99||STAPLE||$1.39||200.90%||4.51%||6.33||2.55%||2.37||0.39|
|JNJ||Johnson & Johnson||12||$357.34||HEALTHCARE||$27.02||23.09%||7.23%||2.81||2.53%||1.31||0.72|
|RPM||RPM International Inc||15||$7.35||MATERIALS||$1.60||16.39%||52.61%||3.09||2.18%||0.43||1.14|
|HON||Honeywell International Inc||16||$103.55||INDUSTRIAL||$11.18||25.54%||8.01%||3.01||1.96%||1.73||1.07|
|GD||General Dynamics Corp||18||$60.68||INDUSTRIAL||$2.99||29.25%||11.97%||2.55||1.67%||6.13||0.99|
|DD||E. I. du Pont de Nemours and Co||19||$73.47||MATERIALS||$8.10||24.51%||6.79%||2.98||1.79%||1.25||1.05|
|BAX||Baxter International Inc||20||$33.71||HEALTHCARE||$2.78||20.92%||150.97%||3.09||1.03%||1.38||0.7|
iM Rank: Rank according to the ranking system described below (highest rank = 1).
Up Dn: Change in rank since last week e.g. ↓2 if changed from rank 10 to 12, “- -” no change and “<>” new entry
Mkt Cap: Market Capitalization ($ billions)
Sector Code: P123 codes which map to Global Industry Classification Standard codes
Dbt LTQ: Long Term Debt reported for the most recent fiscal quarter ($ billions)
ROE TTM: Income Before Extraordinary Items for the Trailing 12 month period divided by the Average Common Equity expressed as a percentage.
EPS 3Y CGr: Compound annual growth rate of Earnings Per Share Excluding Extraordinary Items and Discontinued Operations over the last 3 years expressed as a percentage.
SI Ratio: Number of days it would take to cover the Short Interest if trading continued at the average daily volume for the month
Yield: Dividend Yield (%) – Projection of the dividends that will be paid in the next 12 months divided by the latest closing price.
PEG: Price to Earnings growth ratio (uses the past 12 months earnings and next year’s EPS consensus estimate)
3Yr Beta: Beta using up to 3 years of weekly returns of the stock and benchmark S&P 500 index.
The iM-Capital Strength Universe
The Capital Strength IndexSM stock qualification criteria were modified to select stocks for the iM-Capital Strength Universe. The stocks come from the Russell 1000 Index and must:
- have a minimum three-month average daily dollar Trading Volume of $10-million;
- have a Cost of Capital less than the Return on Capital;
- after meeting criteria 1 and 2, be in the top 500 securities by Market Capitalization;
- have at least $1-billion in Cash or $1.1-billion of Short Term Investments;
- have a Long Term Debt to Market-Cap ratio less than 30%;
- have a Return on Equity greater than 15%;
- have a compound annual growth rate of Earnings per Share over the last 3 years greater than 2.5%;
- and have a Short Interest Ratio of 9 days or less.
The universe is then reduced to 20 stocks by sorting eligible companies according to the Sales percent change (recent Quarter vs Quarter 1 year ago), and Average Dividend Yield over the last 60 months.
The Ranking System
Stocks are ranked by a dividend yield-and-growth combination ranking system with four factors:
- Dividend Yield (%), using the Indicated Annual Dividend;
- Dividend Percent Change, Year over Year (%);
- Dividend Growth Rate, 3 Years (%);
- Dividend Yield, 5 Year Average (%).
Factor-1 has a weight of 70% and the remaining 10% each.