It still seems too good to be true. The stock market staged one of the swiftest rebounds in history amid an earnings slowdown and global economic deterioration, putting December’s pain completely in the rear-view mirror.
We all know high dividend-yielding stocks often provide steady income in a turbulent market, but simply buying the highest-yielding names could go in vain as sometimes those stocks are value traps. The key is to find real dividend growers. Quantamize, a quantitative investment research firm, uses cloud and quantum computing to identify factors that identify reliable dividend payers.
Those factors include return on invested capital, cash flow, quality and capital efficiency ratios, according to Quantamize’s chief investment officer Stephen Mathai-Davis. He then applied the factors to the top third of the highest-yielding stocks in the Russell 1000, to winnow the pool down to just 20 stocks.