Saturday, 19. August 2017  
25.06.2016 11:19
Author: Alex Waber

STOCK SCREEN: Defensive Dividend Stocks With Solid Margin-Of-Safety And Relative Strength

 

After Britain’s vote to leave the European Union roiled global markets, economists are grappling with how best to gauge the potential impact on countries and companies. Views range from downbeat scenarios such as Brexit contagion weakening the global economy significantly, to optimistic ones where both the UK and the EU emerge stronger and more economically prosperous, if core EU members are able to take advantage of the UK’s absence to move the union’s agenda forward.

 

How and when the U.K. leaves the EU is uncertain and it is unclear what will follow. However, the financial market turmoil created by Brexit might slow or possibly even reverse the interest rate hike cycle in the U.S. When interest rates stay low and top-line growth is only moderate, then capital return via dividends and buy-backs should become more attractive.

 

In looking for ideas, we screen for defensive stocks with high dividend yield and solid Margin-Of-Safety, according to our AVM’s Intrinsic Stock Value estimates, and with Relative Price Strength.

 

Here are the filter criteria:

1. Market capitalization above 1bn.

2. Dividend Yield above 3 percent

3. Upside to Intrinsic Stock Value according to our AVM’s Greenblatt inspired estimates.

3. Stock market sensitivity below average.

3. Relative Strength on a 12 month basis.

 

Here is our list of stocks matching all criteria in alphabetical order. Company names in the table below are linked to the ANALYZER, our single stock analysis tool. Intrinsic Value Model assumptions can be adapted in the MODELER, our modeling and forecasting environment:

CLICK COMPANY NAME FOR DETAILED STOCK VALUE ANALYSIS

COUNTRY

INDUSTRY

LAST PRICE

MARKET CAP.

MEAN MULTIPLE UPSIDE [%]

GRAHAM UPSIDE [%]

GREENBLATT UPSIDE [%]

DIVIDEND YIELD [%]

 AUSTEVOLL SEAFOOD ASA

 Norway

 Food

69.25

14038

37.1

35.2

18.6

6.8

 BEAZLEY PLC/UK

 United Kingdom

 Insurance

351.70

2467

-38.0

-9.7

22.5

5.4

 CA INC

 United States

 Software

32.00

13452

-19.5

-9.9

10.9

3.3

 CIA DE DISTRIBUCION INTEGRAL

 Spain

 Transportation

18.14

2408

-26.6

52.0

42.1

4.5

 IMPLENIA AG-REG

 Switzerland

 Construction

62.65

1157

-8.5

30.0

58.9

3.2

 INDUS HOLDING AG

 Germany

 Miscellaneous Manufacturer

42.50

1042

-14.2

0.5

2.2

3.1

 JB HI-FI LTD

 Australia

 Retail

23.51

2326

-1.6

0.2

0.2

4.1

 LANCASHIRE HOLDINGS LTD

 Bermuda

 Insurance

541.50

1449

-29.1

96.1

78.2

11.0

 SWISS RE AG

 Switzerland

 Insurance

80.05

30480

-20.6

5.7

75.4

6.1

 TALANX AG

 Germany

 Insurance

26.60

6724

-0.8

-4.1

44.0

5.0