Graham Number Overview
The Graham Number is fairly straightforward: investors can simply multiple the price-to-book ratio (P/B) by the price-to-earnings ratio (P/E).
Investors want to focus on stocks with a Graham Number below 22.5, and the lower, the better.
Income investors can explore the lucrative US market for stocks with long dividend-paying histories.
Some of these companies are called “dividend aristocrats”, a term that refers to a stock that has raised its dividends without fail for 25 years or more.
Dividend increases provide signaling value to me in my process of evaluating dividend growth companies. I believe it is an important tool in my toolset.
This exercise also helps me quickly review and scan large quantities of companies in order to narrow down the list to the most desirable candidates for further research.
I typically focus my attention on companeis that have managed to increase dividends for at least a decade.
