Value Investor: How to spot quality stocks

High-quality companies are more likely to provide higher shareholder returns and are typically better at withstanding market volatility. Here's what to look for.

At StocksInValue, we focus on ‘quality’ companies for investment. Conservative portfolios should prefer quality companies because they are more likely to provide higher total shareholder returns (from steady growth in intrinsic value and higher dividends); less likely to downgrade earnings forecasts; less likely to require dilutive equity raisings or run out of cash and enter administration; and typically less volatile in the sharemarket than low-quality companies.

Quality companies have several common features.

The first is a high and recurrent return on equity. The more productive a firm’s equity, the higher the dividends it can sustain and the faster it can grow intrinsic value.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles