Cautiously counting on earnings and dividend growth

Cautiously counting on earnings and dividend growth

Our growth at a reasonable price (Garp) screen splices dividend yield, five-year earnings growth rate and forecast two-year earnings growth rate. The trailing price-to-earnings ratio of a share is divided by this figure to give our version of a Neff PEG ratio. It’s worth recounting these inputs as there is reason to question the efficacy of the methodology given how the response to Covid-19 is hurting the economy.

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