Finding Stocks Based on Biggest Investing Theme for 2019

At the start of the year, Forbes ran an article by analysts at Hennion & Walsh Asset Management on the Top 10 Investment Themes for 2019. Number 1 on their list was that quality and financial health in U.S. companies would be important for weathering the year. They defined this as firms that have “strong balance sheet attributes, earnings sustainability, distinguishing characteristics or a competitive advantage from their peers, and pay an attractive dividend.”

If you agree and are interested in finding companies with these attributes, you are in luck. AAII has a multitude of articles that can point you in the right direction. Here are just a few.

Common Size Financial Statements

A template that uses data from the balance sheet, income statement and cash flow statement to produce financial comparisons.

Focus on the Value of a Business, Not the Stock’s Valuation

Valuation ratios do not tell you what you are getting for your money, whereas intrinsic value allows you to assess the stock’s potential.

Three Pillars for Successful Dividend Investing

A total-return strategy that seeks stocks that have the potential to rise in price and make larger dividend payments in the future.

Revisiting the Driehaus Momentum Approach

Tweaking the original screening strategy by focusing more on recent earnings growth and loosening the momentum filter results in more passing companies and better performance.

Firms Rich in Cash Relative to Stock Price

With a large cash hoard, a firm should be able to weather an economic storm, fund research and development efforts, acquire other firms, pay out dividends or repurchase shares and even entice a buyout offer.

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