Winning Growth & Income
This is a dividend-focused strategy loosely on the "Growth & Income Winners" screen outlined by Kevin Matras in his book, entitled Finding #1 Stocks.
The approach starts out looking for solid growth parameters then drills down to the best dividend payers of the group.
In Matras' version, however, the primary filter is the US-focused Zacks Rank (a proprietary metric analysing analyst forecasts for i) Agreement, ii) Magnitude, iii) Upside Potential, Surprise). However, we simplify this to just look for a positive change in analyst forecasts over the last quarter instead.
Matras envisages selecting the top 7 by dividend yield, but with no more than 2 in each sector - although it's hard to find 7 such stocks qualifying on the UK market. We take the top 14 but suggest you review the resultant list with sector diversification in mind. more »
6 Month Return: