This month, from the FTSE All Small Companies index, seven companies pass 7/8 tests, although none achieve a perfect score. Tellingly, it is either the earnings or dividend growth rate test that is failed, giving investors a clue where to focus the next stage of their research.
- On the FTSE All Share screen, which has cross-over with the small companies screen but also looks at large caps, two companies pass 8/8 tests. One of these is Carnival (CCL) which has had strong negative price momentum over the past few months, so again caution is required.
- Screening the Aim market reveals another five companies that score 8/8 – this includes property companies that need to be assessed carefully at this stage of the cycle and some other companies that, thanks to recent share price weakness, have become cheaper and thus their dividend yield has risen.
