High Dividend Payers with Improving Fundamentals

Harry Domash  |

Piggy_Bank.jpgAround 15 years ago, Joseph Piotroski, an accounting professor at University of Chicago, formulated a strategy for pinpointing value-priced stocks likely to outperform the overall market.

In a nutshell, Piotroski’s strategy involved defining a universe of cheap stocks, based on price to book ratios. From that universe, he pinpointed those with the best track records of improving fundamentals, which he defined as increasing profitability while at the same time cutting debt. Over the years, stocks meeting Piotroski’s requirements have been shown to outperform other value-based strategies, as well as the overall market.

I’ve been experimenting with adapting Piotroski’s principals to high-dividend payers, but not necessarily value-priced stocks. I’ve maintained Piotroski’s basic strategy, but tinkered with the details, particularly, putting more emphasis on cash flow growth.

My version, which I creatively dubbed, High-Dividend Payers with Improving Fundamentals,” has produced promising results over a variety of time periods. However, as you’ve heard; historical results don’t necessarily predict the future. So, with that caveat, here’s my current list. 



Recent Price

  Dividend Yield


    AGL Resources




           Comtech        Telecommunications












      Douglas Dynamics




          Duke Energy








 Schnitzer Steel Industries




     Targa Resources




 Waddell & Reed Financial








As is the case with the results produced by any screen, consider these stocks to be research candidates, not a buy list. My testing has found good results for holding periods as short as four weeks. So, I’ll revisit the list in a month and report on the results.


For tips and information on the best utilities and dividend stocks from Harry Domash, please check out Dividend Detective


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Symbol Name Price Change % Volume
WDR Waddell & Reed Financial Inc. 21.29 0.02 0.09 217,863 Trade
CMRE Costamare Inc. $0.0001 par value 6.83 0.02 0.29 123,717 Trade
TRGP Targa Resources Inc. 55.38 0.12 0.22 726,172 Trade
WILN QTRH:CA Quarterhill Inc. n/a n/a n/a 0 Trade
CMTL Comtech Telecommunications Corp. 33.30 0.47 1.43 173,985 Trade
GAS AGL Resources Inc. n/a n/a n/a 0 Trade
DIN Dine Brands Global Inc. 81.92 0.92 1.14 76,112 Trade
PLOW Douglas Dynamics Inc. 46.80 -0.20 -0.43 54,728 Trade
ETR Entergy Corporation 82.35 -0.14 -0.17 647,645 Trade
SCHN Schnitzer Steel Industries Inc. 27.50 -0.70 -2.48 131,903 Trade
DUK Duke Energy Corporation (Holding Company) 79.56 -1.06 -1.31 4,691,459 Trade


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