Dividends and looking for gems in the consumer discretionary sector

If you have been to a shopping mall lately, you would have noticed all the shops which sell clothing and other things were declared non essential as we were order to stay at home. All the people who work in the stores are laid off, and it is important to feel compassion for them. As an investor, you should ask yourself are any of the stocks, worth buying or looking at to gain more information?

One of the people who published a chard was Shirley Li of FactSet.

Ms. Li used FactSet’s Universal Screening to examine:

-companies selling nonessential consumer goods and services

  • a labor management scores using MSCI ESG Research – they focus on environmental, social and government data. The data also includes supply chain management and employee well being.

Company Mkt Cap Recent Close Labor Mgmt Price Rtn Price Rtn Div

$bil Mar 23-Apr 6 Feb 19- Apr 6 yield %

Hasbro 12.9 100.70 8.8 37.3 % -32.6% 3.8

Best Buy 19.4 85.07 8.6 18.7 – 31.5 3.7

Whilrpool 7.3 130.81 7.5 44.0 -37.2 5.2

D R Horton 16.6 52.12 7.0 24.7 -40.4 1.9

Tiffany 21.9 181.27 7.0 5.3 -4.5 1.8

Expedia 9.2 74.72 6.9 3.9 -56.7 2.6

Under Armour 4.6 12.71 6.6 11.5 -45.7 0.0

NVR Inc 12.3 3806.45 6.5 23.7 -32.1 0.0

Linking to dividend paying stocks, in the above chart the weeks of Feb 19 to April 6 shows massive declines as the investment community dropped retail stocks, There was a reason to drop them, however in the bulk selling the good companies were sold as well as the not so good ones. As an investor it is up to you to do homework to determine which ones are to be considered when they go up. There are always many choices, how do you narrow the field in order to buy the best choice for you?

There are more questions than answers, till the next time – to raising questions.

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