What most investors fail to comprehend is that in investing, simple works best.
What do I mean simple?
In this article, I selected only stocks with the following factors:
Low Price to sales – you pay the lowest possible amount for each sale the company has Low Price to free cash flow – you pay the lowest possible amount for each dollar in free cash flow the company has Top 50 percentile of dividend yield – you look for companies with the highest dividend yield Sustainable dividend yield – companies must have sustainable dividends to be paid out over timeAnd achieved 3578.7% returns over the past 20 years.
That’s how simple it is.
The ability for the above factors to produce consistent returns was documented by James P. O’shaughnessy in his book What Works On Wall Street, where the author, a well known quantitative investor (he runs a hedge
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