Interview: "For Dividends, It Is Not Just the Yield That Has to Be Right"

You focus mainly on dividend stocks. What does stockmarketscan.com give you?

I didn't want to search only for the highest dividend yield. A high payout on its own says little about whether a company is solid in the long run. That is why I found the free Income & Growth screener on stockmarketscan.com interesting. For me the name sums up exactly the ambition: income and growth should be looked at together.

What was missing in your search before?

Many simple filters only show dividend yield, price or market cap. That quickly gives you a long list, but not a good overview of the quality of the companies. I also wanted to look at earnings development and dividend growth. On stockmarketscan.com I can start with a prepared screener and don't have to construct a complete filter logic myself first.

What does the screener filter for, as you see it?

According to the description it combines, among other things, earnings growth, dividend growth, a positive current EPS trend, a minimum price and further criteria. That combination is exactly what I like. I don't just get a list of high dividends, but a selection in which growth is taken into account too. That makes the subsequent company analysis more efficient for me.

How do you use the results?

I sometimes export interesting hits as CSV and carry them over into my own overview. Then I look at the business model, debt, payout ratio, free cash flow and the company reports. stockmarketscan.com takes the groundwork off my hands, but I still do the deep review myself. I also check whether the data is current and whether there are any special corporate events.

Why not simply use a single metric like dividend yield?

Because an unusually high yield can also be a warning sign if the share price has fallen sharply or the payout is under pressure. I don't want to automatically pick the highest number. For me the screener is a tool for finding companies with several fitting characteristics. Afterwards I have to understand why the figures look the way they do and what risks lie behind them.

Is the free version enough for that?

For getting started, yes. The three free screeners are practical for getting to know the principle. I can start without a credit card and quickly see whether the way of working suits me. For my normal research the combination of screener, watchlist, CSV export and my own review is often already enough. Anyone who needs more lists or additional features can look at the paid plans.

What do you find particularly helpful?

That the criteria don't feel completely opaque. The glossary explains the setups. That builds more trust, because I can follow why a stock appears in a list. I can also compare the results with my own dividend history and notes instead of taking everything unchecked from a single interface.

Has stockmarketscan.com changed your investment strategy?

Not fundamentally. I am still long-term oriented and don't buy just because a name appears in a screener. But stockmarketscan.com has made my research more structured. I now start with a traceable pre-selection and then work systematically through the company data. I find that far more pleasant than a completely open search.

Would you say the platform makes investment decisions easier?

It makes the research more structured. That is a difference. I get sensible candidates faster, but the decision and the risk stay with me. What I particularly like is that the tool does not promise to predict the future. For me it is a very useful filter, but no substitute for an independent review or sensible risk management.

Related Resources

• Income & Growth Screener, free to use.
• Screener Glossary
• All Stock Screeners

This interview reflects one user's personal experience. It is not investment advice, and screener results are research data, not recommendations.