Tomorrow I put more money to work in my MFI Formula approach. I now have a very snazzy excel spreadsheet to automate what is actually a very simple approach. Recall I will take the following steps:
- Start with top 50 stocks greater than $100m from official screen.
- Pare down that list to stocks with a market cap > $600m and a Yahoo dividend yield of greater than 2.4%.
- Then I can throw out one stock.
- Randomly select 5 stocks from remaining list.
If I did it today, here are the stocks:
| Number | Ticker | Market Cap | Price | Dividend | Yield |
| 1 | 2,573 | 53.45 | 2.08 | 3.9% | |
| 2 | CA | 13,620 | 30.74 | 1.00 | 3.3% |
| 3 | 144,178 | 28.33 | 0.74 | 2.6% | |
| 4 | 10,396 | 37.94 | 1.35 | 3.6% | |
| 5 | 3,678 | 33.99 | 1.32 | 3.8% | |
| 6 | KING | 5,146 | 15.60 | 0.46 | 2.9% |
| 7 | 2,712 | 44.23 | 1.38 | 3.1% | |
| 8 | 1,180 | 7.73 | 0.60 | 7.8% | |
| 9 | 5,069 | 24.76 | 0.75 | 3.0% | |
| 10 | 670 | 35.13 | 1.62 | 4.6% |
Of course my first tranche had BKE, CA, GME and NUS. So there is a decent chance I will have some repeats. But that is part of the "formula". Wish me luck. I will let you know the five tomorrow or else you have to wait until 2015.
| 10/1/2014 Stocks | Start | Current | Dividend | Pct Gain | R3K Gain |
| BAH | $23.52 | $27.10 | $0.11 | 15.7% | 5.8% |
| $45.55 | $53.52 | $0.22 | 18.0% | 5.8% | |
| CA | $27.87 | $30.77 | $0.25 | 11.3% | 5.8% |
| $41.70 | $34.35 | $0.33 | -16.8% | 5.8% | |
| $44.56 | $44.25 | $0.35 | 0.1% | 5.8% | |
| Totals | 5.6% | 5.8% |
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3 comments:
Marsh,
I am not sure I would want 10% of my money in any MFI stock. Before I did a repeat I would drop down in dividend yield or change the sort.
I posted this on one of your earlier blog posts:
I'm curious why you:
"Take the to 50 stocks over $100 million" then proceed to throw out ever stock under $600M
Why not just take the top 50 over $600M, then you would likely have even more stocks to randomize
Paul & John - I am simply replicating an approach that would have worked very very well over the past 9 years. There are other permutations that may have worked as well. And John, even if I got the same stock in four straight iterations, that would be just 1.4% of my net worth.
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