It is a year since the launch of the Investors’ Chronicle’s Geico screen, the snappy(ish) acronym I’ve given to dividend-paying companies with world-leading capital return track records, (or Global Equity Income Compounders in their unabbreviated form).
The method is unique in three ways. First, in screening the constituents of the MSCI World Index, it is the only approach in these pages that looks across multiple exchanges. Second, it is the only stockpicking process we follow that is derived from an active management team working in the market today, namely that running Guinness Global Investors’ Global Equity Income fund (IE00BVYPNY24). Third, and in line with the Guinness fund’s focus, it is the only screen that considers 10 years of trading data.
Calling this the ‘Geico’ screen also allows me to make a not-too-subtle nod to the US auto insurer of the same name, one of the most famous companies in investing history.