- Market capitalization between $100 million and $5 billion.
- Net profit margin of at least 8% for the trailing 12 months and for the latest fiscal year.
- Dividend yield greater than 1%.
- At least four consecutive years of increasing dividends.
- Payout ratio less than 50%.
- Price-to-earnings ratio less than 20.
- No financial stocks.
NEW YORK ( TheStreet) -- My column yesterday on Hillenbrand ( HI) referenced one of the stock screens I use to find compelling small- and mid-cap names. It often reveals companies that are a couple of cuts above some of the deep value techniques I utilize, in terms of quality. This particular screen combines the quest for companies with solid net profit margins, and growing, sustainable dividends.
At the time of publication, Heller had no positions in stocks mentioned. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Follow @JonMHellerCFA