Home Testing O-Metrix
Testing O-Metrix PDF Print E-mail
SeekingAlpha Articles - SA Articles
Written by Dr. Econ   
Tuesday, 12 August 2008 11:50

The O-Metrix Grading System is a very simple, yet extremely powerful method to rank stocks based on their future return potential. It is based on three simple parameters. Dividend yield, Earnings Growth and Price to Earnings Ratio. As an investor we want to purchase a high-growth, high-dividend company at a discounted price. Thus, the O-Metrix formula is based on following equation:

O-Metrix = 5 x (Dividend Yield + Earnings Growth) / PE Ratio

If you are a dividend-income oriented investors, use Double Dividend O-Metrix Score as such:

DD O-Metrix = 5 x (2 x Dividend Yield + Earnings Growth) / PE Ratio

I multiply the numbers by 5 to get a scale over 10.

Here is a a letter grading system:

  • 10+ : A+ Grade Stock
  • 8 to 10: A Grade Stock
  • 6 to 8: B Grade Stock
  • 4 to 6: C Grade Stock
  • 2 to 4: D Grade Stock
  • 0 to 2: F Grade Stock
  • <0 : Sub-F Grade Stock

As investors, it is our mission to find stocks with A+ scores. Such opportunities rarely exist. Always be on hunt. I back-test the model on specific sectors and the results are promising. Here, is a list of articles on sector by sector back-testing models on O-Metrix grading system:

A Back-Testing Model of the Best Technology Stocks for the Long-Term Investors

A Back-Testing Model of the Best Industrial Dividends for the Long-Term Investors (June 14, 2011) - (Caterpillar,Dover,General Dynamics, Raytheon, Lockheed Martin, Eaton, MMM, Boeing, Goodrich, etc.)

A Back-Testing Model of the Best Mid-Cap Basic Material Dividends for the Long-Term Investors (June 12, 2011) - (BP Prudhoe Bay Royalty Trust, Natural Resource Partners, Enbridge Energy Partners, Sunoco Logistics, Magellan Midstream Partners, Alliance Resource Partners LP, Alliance Holdings, etc.)

A Back-Testing Model of the Best Electric Utility Dividends for the Long-Term Investors (June 6, 2011) - (Atlantic Power, Dominion, Edison International, NextEra, Southern Company, Duke Energy, Progress Energy, etc.)

A Back-Testing Model of High Dividend Stocks for the Long-Term Investors (May 23, 2011) - (Apple, Cisco, Chevron, Telefonica, McDonald's, Walmart, General Electric, etc.)


Attachments:
FileDescriptionUploaderFile sizeLast modified
Download this file (FairValueFinalWeb.xls)O-Metrix CalculatorDownload Free O-Metrix CalculatorDr. Econ31 Kb10/09/11 12:03
Last Updated on Thursday, 20 October 2011 09:13
 

Comments  

 
0 #125 Shelia 2018-02-20 20:53
Good post. I will be experiencing a few of these issues as well..


Here is my blog: agen judi Piala Dunia 2018: http://louisvuittonhandbags.name/
Quote
 
 
0 #124 Lillie 2018-02-16 15:15
Ga het maar navragen aan een aantal vrouwen.

Feel free to visit my web site ... prepaid gratis datenvolumen: http://sexdatehasselt.tk/sitemap13.php
Quote
 
 
0 #123 Lida 2018-02-12 14:40
Currently it sounds like Expression Engine is the best blogging platform out
there right now. (from what I've read) Is that what you are using on your blog?


Here is my web site - tarif chiropracteur montpellier: https://www.youtube.com/watch?v=qZbDZcwDIxo
Quote
 
 
0 #122 Hunter 2018-02-03 06:47
Je vous expose le point de vue d'une FEMME.

Look at my blog :: annoncerencontr ex.tk: http://annoncerencontr ex.tk/sitemap51.php
Quote
 
 
0 #121 Lorraine 2018-01-31 12:35
J'ai revu un vieux plan cul. J'ai pas de plan cul.


Feel free to visit my homepage ... video
culture pub: http://femmesmuresenbas.tk/sitemap18.php
Quote
 
 
0 #120 Ila 2018-01-21 20:47
De quoi trouver facilement des plans culs ?

My blog post: rdv
femme enceinte travail: http://sitedrencontre.tk/sitemap27.php
Quote
 
 
0 #119 Adrienne 2018-01-21 19:36
I love what you guys are usually up too. This kind of clever work and exposure!
Keep up the terrific works guys I've incorporated you guys to my own blogroll.


Feel free to surf to my web site; visit yacht charter: https://earnestmacias.Joomla.com/3-the-wondrously-designed-abu-dhabi-yacht
Quote
 
 
0 #118 Elton 2017-11-05 08:34
Acontecerá devo acudir para decenário?

Vá até meu página ... mulheres nuas na webcam [http://dovezi.vigilance.ro/?mulheres_ao_viv o_36753: http://dovezi.vigilance.ro/?mulheres_ao_viv o_36753]
Quote
 
 
0 #117 Ashlee 2017-11-02 22:17
Hi! This post could not be written any better!
Reading through this post reminds me of my good old room mate!
He always kept chatting about this. I will
forward this write-up to him. Pretty sure he will have a good read.

Thanks for sharing!

Also visit my homepage heels palace: http://www.censloc.it/web/modules.php?name=Your_Account&op=userinfo&username=AReeves
Quote
 
 
0 #116 Leanne 2017-10-21 12:06
It's appropriate time to make a few plans for the long run and it's time
to be happy. I have read this post and if I
may just I desire to counsel you some fascinating things or
tips. Maybe you can write next articles regarding this article.
I wish to learn more things about it!

Also visit my site: Denny: http://blackjacklearning.org/page/4/index.html
Quote
 

Add comment

Comments are greatly appreciated.

Security code
Refresh

 
. .