I’m interested in adding a portfolio of value shares to my usual momentum/breakout approach, as value based strategy returns correlate inversely with my usual price momentum (value shares normally get their definition after price falls and momentum is backwards looking). Any screen would also serve, in the event of a market crash, as a quick shortlist of what to put in my basket.

I thought I'd describe my rational/thoughts and hopefully get feedback/tips from those who might be already pursuing a similar strategy.

Dividend yield is not included as a measure of return for any of the guru strategies or Stockranks. However, many studies state the importance of return from yield https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3051173. Stockopedia acknowledges the factor and dividend yield is part of the value rank.

As a consequence of not counting yield in guru returns, there are numerous value, income and bargain based guru strategies, whose returns are under represented to a greater or lesser extent as they tend to have a higher yield. When looking at these it is instructive to look at the current qualifiers average yield (from the value tab) and add that on to the annualized return (the easiest way that I’ve found is to copy and paste into a spreadsheet and average the column). Take this (cherry picked) strategy https://www.stockopedia.com/screens/winning-growth-income-105/#display ; For the UK an annualized return of almost 17%, before dividends, plus a (current) yield of 6.5%. That beats many growth screens.

Stephen Bland has a methodical strategy based around high yield, sector diversification, strategic ignorance and once set up, as much indolence as possible. If I’ve misrepresented this, I apologise now and I encourage people interested to read his recent thread https://www.stockopedia.com/content/how-i-build-an-hyp-459388/ . Although it appeals to me from a yield perspective, I’m not psychologically quite ready for it, as it ignores capital changes. Another 20 years and I'll sign up.

There are other easier options to easily diversify away risks, while still seeking dividends, including traditional funds or ETFs. They can be purely yield based (ETFs like iShares UK Dividend Plus https://www.ishares.com/uk/individual/en/products/251807/ishares-uk-dividend-ucits-etf ) or take a more cautious approach (ETFs such as SSGA S&P UK Dividend Aristocrats GBP https://uk.spdrs.com/en/professional/etf/spdr-sp-uk-dividend-aristocrats-ucits-etf-SPYG-GY). These were picked after a quick google, so nothing notable about them. They both distribute income and don’t seem to be going anywhere (their total return includes distributions, but also…

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