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Rating each stock according to relative degrees of safety and value

May 25th, 2009 admin No comments

High Grade stocks whose dividend payments are considered elatively sure are rated:
AAA—Safest
AA—Safe
A—Sound

Investment Merit stocks that usually pay dividends:
BBB—Best of group
BB—Good
B—Fair

THE FUNDAMENTALIST: Lesser Grade stocks, paying dividends but future not sure:
CCC—Best of group
CC—Fair dividend prospects
C—Slight dividend prospects

Lowest Grade stocks:
DDD—No dividend prospects
DD—Slight apparent value
D—No apparent value