SNIPI™
(Stock Selection Process)
From the global universe of thousands of companies Long Run Financial, Ltd. has created a short evolving list of less than 150 dividend-paying companies with the attributes necessary to fit within our narrow range of parameters. These companies are grouped into their respective sectors and then compared only with their sector peers. As an example, a healthcare company is compared only to another healthcare company and not with a real estate company. Determining factors for each individually selected company include present market conditions and each company’s unique responses to those conditions at the time the portfolio is crafted.
Company considerations –
- Is the stock cheap or expensive relative to its past share prices?
- Is the stock cheap or expensive relative to its sector peers?
- How does the stock price react in relation to the general movement of the stock market?
- What is the stock’s long-term annual growth rate?
- How consistent is the stock’s price? Does it fluctuate a lot?
- How long has the company been paying a dividend?
- How reliable is the dividend?
- Does the dividend increase with time?
- What are the analysts saying about the company?