- A rising trend of earnings, dividends, and book value per share.
- A balance sheet with less debt than other companies in its particular industry.
- A P/E ratio no higher than average.
- A dividend yield that suits your particular needs.
- A below-average dividend pay-out ratio.
- A history of earnings and dividends not pockmarked by erratic ups and downs.
- Companies whose ROE is 15 or better.
- A ratio of price to cash flow (P/CF) that is not too high when compared to other stocks in the same industry.
Keep It Simple and Safe.