A Dividend Growth Investor Looks At AAII's Stock Screens

The January, 2014 edition of AAII Journal, published by the American Association of Individual Investors, contains their annual review of the 65 stock screens on AAII.com. As the Editor's Note says, the screens are based on the methodologies of many famous investors. As a dividend growth investor, I bring a bias to articles like this. I want to know how they can help me in my quest to build an optimized income stream for retirement. By "optimized," I mean that it is large enough (for me), grows faster than inflation, and is reliable.

To my mind, though, a far better source of ideas is David Fish's Dividend Champions document. That document is also updated monthly, but unlike the AAII screens, the stocks in it usually remain for a long time. They are dropped only if they cut their dividend, are merged out of existence, and similar reasons. There is nothing like a 20%-per-month turnover rate. If you are skilled in Excel, you can use the spreadsheet to make your own screens, or you can accomplish the same thing with a yellow highlighter.

Source: Seeking Alpha

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