In this article I set out how I have used Stockopedia's screening facilties to identify some potential high-yielding investment candidates for my portolio.

My Objective

At present, I have a target weight of 18% in my SIPP portfolio for high yielding equity investments (distinct from fixed interest investments). As time passes, my objective is to covert an increasing proportion of my portfolio to income-generating assets, so that I can spend less time on investing/trading and rely on the income to live on, whilst devoting my time to more productive things.

Given the low interest rate environment (with no end yet in sight), high yielding equities are one of the few ways of generating a decent return on capital (without being reliant on the vagaries of the market or M&A to realise returns). For that return to be reliable, I am seeking "relatively safe" investments, where the yield now is attractive and the chances of a dividend cut are reasonably low.

A number of my earlier higher yielding investments have risen significantly in share price, making their yield less attractive (e.g J Sainsbury (LON:SBRY) , GlaxoSmithKline (LON:GSK) , Keller (LON:KLR) ). Hence I have been trimming those (as those who follow my tweets @marben100 will have seen!). This has led to me now being underweight at below 14% of my portfolio and hence in need of some new investments... so time to try out Stockopedia's screening facilities. Must admit that I wasn't satisfied with the criteria of the built in high-yield screens, so decided to "brew my own".

Current Holdings

Just for reference, the companies that are currently within my HY subportfolio are:

- Interserve (LON:IRV)

- Halfords (LON:HFD)

- Braemar Shipping Services (LON:BMS)

- Vodafone (LON:VOD)

- J Sainsbury (LON:SBRY)

- Smiths News (LON:NWS)

My Screen

So, my screening criteria are as follows:

Yield > 4.9% [obvious!]

"Div Grwth Streak" > 3 [has been growing dividends for more than the last 3 years]

Net Debt/Price < 1 [not overgeared/overindebted]

Mkt Cap > £50m [For this subportfolio, avoid illiquid tiddlers]

Div cover…

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