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AlphaScreens: Yields signal excitement, not safety

Our dividend yield screen is struggling to find good value safe income stocks but it is picking out some interesting Aim companies.
August 12, 2019

In truth, there is a dearth of safer income stocks that aren’t valued too highly to qualify for our screen on yield and the screens are mainly suggesting value plays.

  • Food outlet concessions group SSP (SSPG) was the only FTSE All Share company to score 8/8 on our dividend screen last month. This month it is joined by home improvements supplier Norcros (NXR) and equipment rental business VP (VP.)
  • The Aim stocks that score well on our junior market screen are deep value companies, so they come with the usual health warning to undertake further research. Financial administration group STM (STM) has an interesting business model but it has suffered significant negative price momentum in the last three months.
  • Aim-traded toy manufacturer Character Group (CCT) scores 8/8 and has interesting characteristics like its solid net cash position but there doesn’t appear to be any catalyst on the horizon for a great deal of further upside. Simon Thompson suggested taking profits in his column back in early June.  
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