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Quality shares to build back with in the New Year

As a dreadful 2020 concludes, our quality screen highlights some shares that remain quality stalwarts
Quality shares to build back with in the New Year
  • Many of the same quality names reappear in this month's screen but many still aren't expensive
  • Investors still need to watch out for cyclical businesses that have had a good run

Precious metals miner Polymetal International (POLY) tops our final quality screen of 2021;  its share price momentum has come off slightly, looked at on a three month basis, but analysts’ forward estimates for profits are positive. As a dollar earner with exposure to the gold price, this business has its attractions for UK investors given the challenges facing sterling.  

Consumer goods giant Unilever (ULVR) also gets a maximum 9/9 score on our quality criteria. This is a business that has seen strong demand for its household products and trusted brands in the pandemic. Longer term, the rise in quality own brands is a threat, but this remains a quality stalwart and the 3.8 per cent dividend yield looks attractive in a world of low interest rates. 

Other companies that score well include some businesses that are more cyclical and nature and enjoying a good run. It’s important to conduct further analysis on these businesses, with measures like very high dividend yields worth questioning.

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