Winning Growth & Income is a dividend investing strategy inspired by an approach used by American investment analyst Kevin Matras in his book, Finding #1 Stocks. It combines growth and dividend factors by sorting the market for high yielding companies with strong growth characteristics. Apart from a high yield, this strategy looks for companies with an above average return on equity, a below average price-to-earnings ratio and where analysts have been upgrading their earnings forecasts. It also looks for companies with a low beta (the sensitivity of a share price to the movement of the market). Kevin Matras says the screen works for investors that are "looking for good companies with solid revenues that pay a good dividend". In some respects, this strategy is a small cap version of the Large Cap Dividend Attraction strategy. In Matra's original strategy criteria he uses Zacks Rank, which is a metric for analysing analyst forecasts.
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Finding #1 Stocks: Screening, Backtesting and Time-Proven Strategies
by Kevin Matras
Kevin's backtesting found that his version of this strategy had an average annual compounded return of 20.6% (that's while taking on about 40% less risk than the S&P 500).
This screen uses the following criteria:
Results are sorted by:
And limited to the first 14 Results
| Returns |  |
 |
 |
 |
 |
 |
 |
FTSE 100 |
|---|---|---|---|---|---|---|---|---|
| 1 week | 3.1% | -0.8% | -0.3% | -3.0% | 0.0% | -0.4% | -1.3% | -1.6% |
| 1 month | 5.1% | -1.3% | 1.7% | -7.7% | 6.2% | -1.0% | -2.7% | 0.9% |
| 3 months | -10.0% | -3.5% | -2.6% | -3.7% | -4.0% | 2.8% | -3.9% | -3.1% |
| 6 months | -18.8% | -16.2% | -6.3% | -12.1% | -13.5% | -4.8% | -7.7% | -10.4% |
| 1 year | -17.5% | -21.4% | -3.0% | -12.2% | -23.7% | -4.5% | -2.8% | -11.5% |
| 2 years | -9.9% | -31.5% | -24.9% | 34.1% | -24.5% | 26.0% | -10.6% | -5.3% |
| Annualised | 15.6% | 6.7% | -1.2% | 27.4% | -0.6% | 15.8% | 13.4% | |
| Risks | ||||||||
| Max Drawdown | -27.2% | -36.6% | -32.4% | -20.3% | -32.9% | -18.4% | -17.1% | |
| Avg Holdings | 11.4 | 10.9 | 11.3 | 9.4 | 10.4 | 13 | 13.3 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
