I am frustrated at the moment. I have a yearly habit of buying something for my Roth account each year, but I can’t find any reasonably price public companies without frightening amounts of debt.
Are any of you cautious dividend-buying investors having more luck?
Look at Tesla’s cash flow. They have paid off most of their debt $8.5B remaining, and have some $17 to $19B in cash in the bank.
https://finance.yahoo.com/quote/TSLA/balance-sheet?p=TSLA
The Captain
I have a yearly habit of buying something for my Roth account each year, but I can’t find any reasonably price public companies without frightening amounts of debt.
Here’s a list of 91 companies with P/E ratios less than 15, low Debt/Equity (<0.1) and market caps greater than $2 billion.
https://finviz.com/screener.ashx?v=111&f=cap_midover,fa_…
Feel free to sort them by growth rate, PEG ratio, price performance, etc.
DB2
Are any of you cautious dividend-buying investors having more luck?
I only buy Canuck companies because IRS doesn’t recognize TFSA accounts as retirement accounts. I’ve added to Tc Energy TRP.to yield(5.30%), Enbridge Inc ENB.to yield (6.49%) and last week bought back into Suncor SU.to yield (4.65%). I’m not sure I would call myself cautious but nor am I a paid advisor. Investing at all is just a habit as we live on our indexed federal pensions!
TRP has a fair bit of debt but they are investing in new areas for them that look very promising including medical isotopes via their ownership share in Bruce Nuclear Power.
Anymouse
I should add that I do not consider all debt to be toxic–an investment that will add to the corporation’s value is not a bad thing. I certainly expect new companies to have debt! But it looks like many companies have just been grabbing debt like it’s the latest fad or something.
Anyhow, thanks for the replies. It is getting harder to find those “obvious” buys!
But it looks like many companies have just been grabbing debt like it’s the latest fad or something.
At ZERO interest it’s a good way to fund dividends.
The Captain
I ran DrBob2’s stock screener with the following criteria:
https://finviz.com/screener.ashx?v=111&f=fa_debteq_low,f…
P/E under 20
ROE positive >0
Debt/ equity low < 0.1
Forward P/E > 0 (profitable)
EPS growth this year > 0, next year > 0
Operating margin > 20%
ROA > 0
Payout ratio < 50% (sustainable dividends)
This yielded 20 companies, of which 18 are financial. I already own shares of the Vanguard Financial Sector ETF. I wonder if it would be better to cherry-pick from this list instead.
Wendy
This yielded 20 companies, of which 18 are financial. I already own shares of the Vanguard Financial Sector ETF. I wonder if it would be better to cherry-pick from this list instead.
PE isn’t a very good measure for financial companies, IMO. P/B is typically the preferred measure.