Value & Dividend Screener
Screen stocks for undervaluation and sustainable dividend income using
fundamental financial data from the Finskills API. Implements a multi-factor
quality + value + yield framework inspired by academic research (Graham, Fama-French
value factor, dividend growth investing). Produces a ranked list with scoring
rationale for each position.
Setup
API Key required — Register at https://finskills.net to get your free key.
Header: X-API-Key: <your_api_key>
Get your API key: Register at https://finskills.net — free tier available, Pro plan unlocks real-time quotes, history, and financials.
When to Activate This Skill
Activate when the user:
- Asks to screen for undervalued dividend-paying stocks
- Wants to build an income or dividend growth portfolio
- Asks for stocks with low P/E and high dividend yields
- Wants to find value stocks using fundamental metrics
- Asks to compare dividend sustainability across multiple companies
- Uses terms like "dividend aristocrats", "value investing", "income investing"
Screening Universe
When no specific tickers are provided, use the S&P 500 constituent list as the screening pool:
GET https://finskills.net/v1/free/index/SP500/constituents
If the user provides a specific watchlist or sector, screen only those tickers.
Note: Screening all 500 stocks requires many API calls. When running a full screen,
apply pre-filters based on easily-computable criteria first (sector, indices), then
deep-dive into the top candidates.
Data Retrieval — Finskills API Calls
Per-Stock Data Retrieval (run for each candidate)
1. Financial Statements
GET https://finskills.net/v1/stocks/financials/{SYMBOL}
Extract (annual and trailing twelve months):
- Income Statement:
revenue, grossProfit, operatingIncome, netIncome, eps
- Balance Sheet:
totalAssets, totalDebt, totalEquity, currentAssets, currentLiabilities, cashAndEquivalents
- Cash Flow:
operatingCashFlow, capitalExpenditures, freeCashFlow, dividendsPaid
- Derived: calculate
debtToEquity = totalDebt / totalEquity, currentRatio = currentAssets / currentLiabilities
2. Dividend History
GET https://finskills.net/v1/stocks/dividends/{SYMBOL}
Extract:
dividendPerShare: most recent annual dividenddividendYield: current yield percentage- History array: last 5–10 years of annual dividend payments (for growth rate)
exDividendDate: upcoming ex-dividend date
3. Current Quote + Valuation
GET https://finskills.net/v1/stocks/quote/{SYMBOL}
Extract: price, marketCap, peRatio, forwardPE, priceToBook, priceToSales, enterpriseValue, evToEbitda
4. Analyst Estimates (Forward Metrics)
GET https://finskills.net/v1/free/stocks/estimates/{SYMBOL}
Extract:
- Forward EPS consensus
- Revenue growth estimate
- Number of analysts
5. Analyst Recommendations
GET https://finskills.net/v1/stocks/recommendations/{SYMBOL}
Extract: overall recommendation rating (Strong Buy / Buy / Hold / Underperform / Sell), price target
Analysis Workflow
Step 1 — Establish the Screening Criteria
Value Criteria (at least 3 of 5 must pass):
- P/E Ratio (TTM) < 20 (or < sector average if sector is cyclical)
- Price/Book < 2.5
- EV/EBITDA < 12
- Price/FCF < 18
- Enterprise Value / Revenue < 2.0
Dividend Quality Criteria (at least 3 of 4 must pass):
- Dividend Yield ≥ 2.5%
- Payout Ratio (dividends / earnings) < 65% (< 80% for REITs/utilities)
- FCF Payout Ratio (dividends / free cash flow) < 75%
- 5-Year dividend growth rate > 3% per year
Financial Health Criteria (must pass all):
- Debt/Equity < 1.5 (exception: utilities, REITs can be up to 2.5)
- Current Ratio > 1.0
- Positive Free Cash Flow (FCF > 0 for 3 of last 3 years)
Step 2 — Compute Dividend Growth Rate
From the dividend history, compute CAGR over 5 years:
Dividend CAGR 5Y = (divPS_latest / divPS_5y_ago)^(1/5) - 1
If data is only available for 3 years, use 3-year CAGR and note the shorter history.
Step 3 — Score Each Stock (0–100)
Value Score (30 points max):
| Metric | Scoring |
|---|
| P/E vs. sector median | +10 if < 50th percentile, +5 if < 75th |
| P/B < 1.5 | +10 pts; P/B 1.5–2.5: +5 pts |
| EV/EBITDA < 8 | +10 pts; 8–12: +5 pts |
Income Score (40 points max):
| Metric | Scoring |
|---|
| Dividend Yield ≥ 4% | +15; 3–4%: +10; 2.5–3%: +5 |
| FCF Payout < 50% | +15; 50–65%: +10; 65–75%: +5 |
| Div. CAGR 5Y > 8% | +10; 3–8%: +5; < 3%: +0 |
Financial Health Score (30 points max):
| Metric | Scoring |
|---|
| D/E < 0.5 | +10; 0.5–1.0: +7; 1.0–1.5: +4 |
| Current Ratio > 2 | +10; 1.5–2: +7; 1–1.5: +4 |
| FCF Margin > 15% | +10; 10–15%: +7; 5–10%: +4 |
Step 4 — Risk Flags
Auto-flag (remove from qualified list or flag prominently):
- ❌ Dividend yield > 8% with payout ratio > 90%: Dividend at severe risk
- ❌ FCF negative for 2+ consecutive years: Cannot fund dividend organically
- ❌ D/E > 3.0 (non-financial): Balance sheet stress → dividend at risk
- ⚠️ Dividend frozen (no growth) for > 3 years while yield is maintained by stock price decline
Step 5 — Produce Ranking
Rank qualifying stocks by total score (0–100). Present top 10 with:
- Score breakdown
- Dividend yield + 5Y CAGR
- Key valuation metrics
- Main risk flag if any
Output Format
╔══════════════════════════════════════════════════════════╗
║ VALUE & DIVIDEND SCREEN — {DATE} ║
║ Universe: {S&P 500 / User list} | Pass: {n}/{total}║
╚══════════════════════════════════════════════════════════╝
🏆 TOP QUALIFIED STOCKS (Ranked by Score)
Rank Ticker Score Yield DivCAGR P/E P/B EV/EBITDA Payout D/E
──── ────── ───── ────── ─────── ───── ─── ───────── ────── ───
#1 {TKR} 87/100 4.2% 6.8% 12.4x 1.8x 7.2x 45% 0.8
#2 {TKR} 82/100 3.8% 9.1% 15.1x 2.1x 9.3x 52% 0.6
#3 {TKR} 79/100 3.2% 11.5% 13.8x 1.5x 8.8x 38% 1.1
...
──────────────────────────────────────────────────────────────
HIGHLIGHTED PICK: {TICKER}
Business: {Company name, sector, brief description}
Current Price: ${price} | Market Cap: ${mktcap}
VALUATION DIVIDEND FINANCIAL HEALTH
P/E: 12.4x ✅ Yield: 4.2% ✅ D/E: 0.8 ✅
P/B: 1.8x ✅ Payout: 45% ✅ Current: 2.1x ✅
EV/EB: 7.2x ✅ FCFPay: 52% ✅ FCF Margin: 18% ✅
P/FCF: 14.1x ✅ CAGR 5Y: 6.8% ✅ Debt/Cap: 36% ✅
Dividend History: $1.20 → $1.40 → $1.55 → $1.68 → $1.80 → $1.92
5-Year CAGR: 9.9% | Streak: {n} consecutive years of growth
Analyst View: {Buy/Hold/Sell} | Price Target: ${target} | {n} analysts
Score Breakdown:
Value: {28}/30 | Income: {35}/40 | Health: {24}/30 = 87/100
Investment Thesis: {2-sentence summary of why this passes screening}
Key Risk: {1 sentence on main risk (e.g., "Cyclical revenue in automotive sector")}
──────────────────────────────────────────────────────────────
❌ FAILED SCREENER (Notable names that didn't qualify)
{TICKER}: Fail — Payout ratio {95%} > 65%, dividend at risk
{TICKER}: Fail — Negative FCF last 2 years
📊 SCREENING SUMMARY
Passed all criteria: {n} stocks
Value + health only: {n} stocks (no attractive yield)
High yield only: {n} stocks (value/health concerns)
Failed all: {n} stocks
Limitations
- Screening 500 stocks requires many API calls; batch with Pro plan to avoid rate limiting.
- Financial data is trailing/annual; may not reflect recent quarterly deterioration.
- REITs, utilities, and MLPs have structurally higher payout ratios and debt — adjust thresholds.
- International ADRs may have variable withholding taxes on dividends (not modeled here).
