I subscribe to the Value Line Survey The basic rules for inclusion as a potential pick for inclusion in my portfolio are:
1) Must be rated in the top 25% of all Value Line stocks for Financial Strength and Safety – So a rating of B+ or better for Financial Strength and 2 or better for Safety.
2) Must pay a dividend with a reliable record of dividend growth
3) Price Stability must be in the top 65% of all companies
4) Earnings Predictability must be in the top 65% of all companies
5) Timeliness of 3 or higher with a strong preference to stocks rated 1 or 2.
This provides me with an ongoing list of stocks I feel are suitable for investment in, from there I research the stocks, the industry, listen to coference calls to get a feel for the aptitude of the company leaders and narrow my list from there, but the stock I purchase are 99% of the time meeting that qualification.
Selling will occur if :
1) Value Line reduces the Financial Strength at all or if Safety falls below 2. A cut in Safety ranking is a strong reason to sell a stock in and of itself but is not automatic. The good thing about Value Line is noone is pressuring them on these ratings and so you have a much quicker look at possible deterioration than will ever happen with a major rating industry.
2) Timeliness rating falls to 4 or lower. This is a good rule that prevents major losses.
3) Dividend is cut or expected increase unexpectedly does not occur.
There are other more subjective guidelines I follow. The reason for most of the rules is to obtain a dividend stock that no matter what the market is doing will be bringing a dividend home that will grow in excess of inflation.
All of the criteria are by using only the Value Line Survey, for myself as I stated reading the most recent Edgar filings and trying to listen to management on a earnings call enlightens one on the soundness of management plans. There is never a shortage of suitable candidates.
As an example WD40, WDFC a midcap stock. This stock has been on my approved list since 2012 when it yielded nearly 3 percent. Since then the dividend has increased 9 percent annually, while the stock price has increased 600%, in the meantime their profit margins have improved smartly, though there are near term concerns with the supply chain issues in the world today. Today the stock yields 1.2%, The timeliness is 2; Safety is a "1" having been increased from a "2", Financial Strength an A, with Price Stability, Growth Persistence, and Earnings Predictability all over 90.
It is a company that is practically free of debt with about one years earnings worth of debt, while still reducing share count by 20 percent over that time through the natural flow of business and not be leverage, leading to a very sound financial company.
TSLA 
