Investment Criteria

Adequate Size of the Enterprise. Not less than $1.0 billion of annual sales.

A Sufficiently Strong Financial Condition. Current ratio greater than 2, and long-term debt should not exceed the net current assets.

Dividend record. Uninterrupted payments for at least 10 years.

Earnings Stability. Stability of growth of earnings in that no more than 2 declines of 5% or more in year-end earnings in the prior ten years are permissible.

Earnings Growth. Ten-year growth of at least one-third in per-share earnings.

Earnings Yield. An earnings yield of at least 6.7%, i.e., a maximum of 15 times price to earnings of the past three years, or at least as high as the current AA bond yield.

Dividend Yield. A dividend yield of least two thirds the AAA bond yield.

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