Quoted following from the wikipedia.org
Quality investing is an investment strategy based on a set of clearly defined fundamental criteria that seeks to identify companies with outstanding quality characteristics. The quality assessment is made based on soft (e.g. management credibility) and hard criteria (e.g. balance sheet stability). Quality investing supports best overall rather than best-in-class approach.Quality investing is an investment style that can be viewed independent of value investing and growth Investing. A quality portfolio may therefore also contain stocks with Growth and Value attributes.
Characteristics of Quality Stocks
Strong Balance Sheet
Enterprise Life Cycle
Dividend Paying Stock.
Some analysts have selected to use the The Piotroski F-Score for a quality stock screen. It concentrates on profitability, capital structure, and operating efficiency in evaluating the quality of a company.