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 | 1.5% | 1.0% | -1.0% | -5.3% | -5.4% | -2.5% | -2.6% | 3.9% |
| 1 month | -1.6% | -9.2% | -3.4% | -7.2% | -18.4% | -0.6% | -4.6% | 2.5% |
| 3 months | 2.1% | -6.3% | -0.6% | 7.7% | -12.5% | -3.3% | 6.9% | 1.2% |
| 6 months | 0.7% | -8.6% | -2.8% | -4.8% | -15.0% | 0.3% | 12.7% | 7.5% |
| 1 year | -9.3% | -16.7% | 4.0% | 18.1% | -12.1% | -3.5% | 1.3% | 7.8% |
| 2 years | 27.3% | 19.3% | 33.1% | 82.4% | 5.4% | 26.7% | 44.1% | 24.8% |
| Annualised | 10.3% | 4.0% | -1.5% | 14.4% | -0.1% | 15.1% | 9.9% | |
| Risks | ||||||||
| Max Drawdown | -56.0% | -54.5% | -61.8% | -52.6% | -48.8% | -21.0% | -47.8% | |
| Avg Holdings | 10.3 | 10.8 | 9.9 | 8.8 | 6.3 | 12.9 | 12.1 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Low | Moderate | Moderate | |
