Criteria

While I was considering how to diversify an investment portfolio, a related topic that Vivian and I had some vigorous discussion recently was: What stocks should we pick?

Alas, I will not tell you what should be done – for there is probably no black-and-white answer as such. Nonetheless, let me tell you what I am doing.

In essence, I screen for potentially interesting target on the following three criteria:

1. The price is over HK$1.
2. The dividend rate is consistently over 2% in the past 3 years.
3. The average daily trade is over HK$10M.

When I showed this list to Vivian, she was rather surprised – to be specific, she was slightly incredulous with the third criteria.