As investors, hesitating between two stocks or more often happens. What if there was a way to avoid doubts and quickly come to a decision? To make things concrete, we’ll compare Discount Stores stocks: Dollar General (GD), Target (TGT), Costco (COST), Walmart (WMT), and Dollarama (DOL.TO). Make your life easier with our simple process!
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You’ll Learn
- Vero referred to the Dividend Stocks Rock Comparison Tool not long ago, which is what we’ll use for this episode. How was this tool built, and how can investors replicate it if they don’t have access to it?
- Some investors would like to compare dividend stocks that are not in the same sector. Mike explains why it is a bad idea, and how to select the ones to compare instead.
- Once you’ve put all the stocks to compare side by side, the first step is to select the metrics you want. Mike starts with the Dividend Triangle and insists on defining your investment goal.
- Before looking more deeply into the numbers, we need to compare business models. How would Mike do it?
- At this point, we already start to eliminate a few contenders. Mike explains why Target (TGT) and Dollar General (DG) are not his favorites.
- To continue, we need to make sure that there are future growth vectors. Where do you find that information?
- Potential risks are not to be neglected. Those are reflected in the dividend safety score and PRO rating. Would Mike still read more about the downsides of each company?
- Now that investors should not have more than 2 or 3 options, a look into valuation can help make a decision. Which metrics should you use for it?
- All that said, there are flaws related to filters. What are they, and how can investors avoid them as much as possible?
Related Content
Here is the video version of the podcast for listeners who’d like to follow the visual aspect of this content.
You might be tempted to compare Telco stocks these days because of their poor results! Here are Mike’s thoughts on them.
What’s Going on with Telcos? – October Dividend Income Report
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This podcast episode has been provided by Dividend Stocks Rock.
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