Gold miner Polymetal International (POLY) remains the only company scoring full marks on our large cap quality screen. The price of gold has potential to pull-back and be volatile but owning a slice of a company that pays a 3.8 per cent dividend, seems a decent way to play the secular trend of decline in fiat currency.
- Reliable shares that score 8/9 include consumer goods giant Unilever (ULVR), hobby (and perhaps now intellectual property) star Games Workshop (GAW), IT firm Kainos Group (KNOS) and data business Experian (EXPN).
- Steel business Evraz (EVR) is the share that sticks out in the 8/9 group. The high debt and dividend combination a risk that makes its high-ranking in our quality screen seem slightly incongruous.
- When looking at companies listed on Aim, it is vital to do further research and not just buy on the strength of a stock screen. Some of the ideas flagged are quality companies but the tests they fail are a good indicator where to ask more questions. For example, YouGov (YOU) is a great data business, but our screen flags it has become more expensive relative to growth.