In the video below, I go through how to use Fidelity’s Stock Screener. I make extensive use of the resources on Fidelity’s website. The stock screener at Fidelity greatly helps me reduce the amount of stocks to research-it allows me to zero in on particular strategies. Those strategies might include dividends, growth, or even stocks from a particular sector.
What you’ll learn?
First, I take you through a Dividend Stock screen, looking at a medium range yield and higher dividend growth. (As always, it’s important to look for stocks that are growing their dividends, not only ones with a high yield.)
Next, I add in more metrics like Price to Book, this is useful in value stock screens used by many investors. I then add a Price to Cash ratio to the stock screen. Price to Cash is something I ALWAYS look at with stocks. This can be another value stock screen.
In summary, now we have set up the Fidelity stock screener to find stocks with nice dividends, dividend growth and decent overall value metrics.
Another tool in the Fidelity Stock screener I like to use is the function that allows you to search for stocks by percentage above 52 week lows. This helps finding stocks that MIGHT be undervalued, trading at lower multiples.
How to start the stock screen on Fidelty
When you’re on the Fidelity homepage, click on News and Research, then go to STOCKS. From there, on the far left you’ll see “Stock Screeners“, click on that. Lastly click on “START A SCREEN.” This takes you to the screen where you can start applying filters to your stock screen. You can follow along with the video here:
Basic Stock Screener parameters and results
The first parameter I screen for is DIVIDEND YIELD. Click on DIVIDEND and then DIVIDEND YIELD. Fidelity arranges Dividend Yield by breaking them into low, medium, high, and very high. In this screen, I go for a dividend between 1.28 to 5% and this narrows things down to 1375 results (Wow, that’s a lot of stocks!).
The second parameter I add is DIVIDEND GROWTH. I make sure to use the 1 year dividend growth, as I don’t want to miss companies that haven’t been paying a dividend as long. When I add this filter, I’m down to 571 results, but this is still six pages. I have companies that pay a dividend and one that’s grown; however, I need to know about the VALUE of the company.
This is where I added a 3rd parameter-click on COMPANY VALUE and select Price/Book. I use a Price/Book that is less than 3.0; now we are getting somewhere, only 363 results or 4 pages worth of options.
Lastly, I go to “Performance & Volatility” and add % above the 52 week low. this is a good screen to use to look for bargains. I have now narrowed the choices down to 167 results; this is much more manageable than the 1375 I began with.
As you can see, the beauty of a stock screener is it gradually allows you to trim away the things you don’t want. You’ll start with thousands of options and cut it down to hundreds. I stopped at this 4th parameter; however, you could keep going until you get only 50 or so choices. I think there is a danger in cutting it down too much; you might miss something with parameters too narrow on your stock screen.
Now let’s change up what we are looking for:
Perhaps you want a stock with lots of growth and good Return on Equity? Low Beta? High Profit Margins?
You can target all of these using Fidelity’s Stock Screener.
Please keep in mind-numbers can only tell you so much. They don’t tell you about what’s going on in the economy day to day necessarily, or particular challenges the company is facing. So, a stock screener, while a good start, is not enough research. You have to go further, make sure the company has some sort of competitive edge, that there are no scandals or big lawsuits facing the company.
Hopefully this video and write up on how to use the Fidelity Stock Screener was useful. If you have a Fidelity account, there are even more great resources in your account to help on your quest for the best stocks.