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.
- 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.
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