Sunday, May 28, 2017

"World's Best Job" candidates

For those of you unfamiliar with "WBJ", see this defunct Yahoo group. The basic philosophy was to buy a stock prior to the ex-dividend date and sell when the total return is 3%. I'm planning to use this as a precursor to a "Dividend Play" just before the ex-dividend date. I'll start by using a Portfolio123 screen to show me stocks that have:
  1. Weekly options 
  2. At least 4 weeks to go before an earnings report
  3. Ex-dividend date between 15 and 30 days before going ex-dividend
  4. Yield above 3%
  5. 19 years of increased dividends
Then I'll monitor them with StockCharts.com, planning to buy on a price weakness, defined as RSI(2) under 20. For example, the current candidates:
 
http://stockcharts.com/freecharts/candleglance.html?KO,MCY,OMI,TROW|B|B2|-1

I also have a workbook that calculates possible limit prices for RSI(2) being breached. For example:

TickerCurrent RSILast PriceBuy Target
OMI29.5$31.91$31.79
TROW48.5$69.70$68.80
MCY55.8$55.66$55.07
KO94.7$45.39$44.60
 

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