Tom McKay

The AFR have measured the stability of earnings, operating income and dividends paid of each and every one of the biggest 300 listed companies by market capitalisation to come up with a shortlist of the businesses that have had the steadiest earnings profile over the past 10 years. The main criterion is the earnings per share stability score. The term measures how closely actual data tracks a linear trend line. A score approaching 1 indicates the next period's EPS is almost perfectly predictable based on past results. A stability score of 0 suggests a company with an extremely volatile bottom line, which means yesterday's earnings give no guidance to tomorrow's. They have also calculated the stability of operating income and dividends. Read the whole article here: (VIEW LINK)


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