Watch List – Another Way to Identify Stocks to Study

In my last post, I spoke about one of the ways I look for stocks to investigate further by using stock screeners available through Yahoo! Finance.

Another method I monitor stocks that I am interested in is through a watch list. Most investors understand what watch list is, but for those who do not, it is simply a list of stocks that you keep an eye on to see how they react over time.

The goal in my mind is to get some idea of the price movements that occur over time. This way, I know when these stocks are reaching historical or 52-week highs or historical or 52-week lows.

For my stocks to ever make it onto my watch list they must have already passed a couple of quick tests:

1. Must have earnings growth over the past 5 years
2. Must have dividend growth over the past 5 years

This way, I know there is some sort of stability with the company and leadership is managing things effectively. Some of the stocks on my watch list include:

Enbridge Inc
CIBC
Bank of Montreal
Abbott Laboratories
Johnson and Johnson
Intel
Microsoft
Schering-Plough Corp.
American Express Company