How To Use Stock Rover To Evaluate 8 Dividend Stocks for Options Trading, Options Premiums

StockRover.com is the best web site a dividend stock investor and options trader can use to do due diligence on stocks and exchange traded funds.

By Donald E. L. Johnson

Cautious Speculator

• How and why I use StockRover.com to find and check ideas for covered calls and cash secured puts options trading.

• For a fraction of the cost of services used by professional portfolio managers, I can focus on the data and metrics that help me make better decisions.

• Stock Rover helps me look at momentum, technicals, historical data and news about the markets and stocks I follow and own.

• I show Stock Rover tables in most of my newsletters.

StockRover.com is the best web site I’ve found that can be used by individual investors to research stocks and exchange traded funds for options trading.

In my previous newsletter, I looked at eight dividend stocks that currently yield about 4.9% in dividends and have bullish momentum. The table above gives a good overview of momentum for the eight stocks we’re discussing.

Every investor should review a stock’s momentum, trends and fundamentals before trading a stock or its options.

Click on images and zoom in for better views.

The first thing I check is the most important valuation metric and ratio, price to free cash flow (P/FCF).

Then I check the discounted cash flow-based fair value estimates (FVE) and Wall Street analysts’ mean, high and low target prices.

Stock Rover offers some 1,000 metrics that users can use on any portfolio or watchlist table a user wans to format.

That’s why P/FCF is so prominent in this table that I created, not the PE ratio, which too many companies try to manipulate with financial engineering.

A company’s profitability also is important, especially its return on assets (RoA). I like a ROA greater than 10, but in mining, utilities and other industries that are capital intensive, very competitive and generate low profit margins, lower ROAs are acceptable.

Balance sheets help analysts determine a stock’s dividend safety.

Morningstar.com’s financial grades and other grades on these high dividend payers offer additional information about each company. The headings on each table show the dozens of other ways analyst can look at stocks on Stock Rover.

With a simple click on an arrow next to a stock simple, an analyst can bring up very useful eight-page Research Reports.

Note in the first column that there also are powerful, programmable screeners, guru’s portfolios, portfolio tools and an earnings calendar, a portfolio’s dividend income estimator and the ability to generate trading alerts and see Stock Rover’s latest trading ideas. Traders also can connect their brokers’ trading platforms to StockRover.com.

Stock Rover is like a computer operating system. The more you use it and play with it the more powerful it becomes. Most programing is done by clicking on boxes and dragging metrics and column headings, which makes it easy to use for non programmers.

This is Stock Rover’s Idea of the Week.

LINKs:

Home Page. See previous articles on other trades, stocks and watch lists. If you read several of these articles, you’ll learn how my strategy is meant to work. No guarantees. Links to useful web sites are on the lower right corner of the home page. Scroll down.

Follow @realDonJohnson on twitter.com.

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Beware. Like all investing, trading stocks and options is risky. I’m an active private speculator who trades covered calls and sells puts on stocks for my accounts. I am not a professional analyst nor a financial advisor. I don't take and won't take responsibility for how other people trade. This article is for educational purposes only. It is not advice. The data presented looked accurate at publication time except for intra-day fluctuations, but I can’t guarantee the accuracy. Traders should do their due diligence. I reserve the right to trade any of the listed stocks and options at any time. I receive no compensation for producing this content nor for any links.