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% | -2.2% | -2.0% | 4.7% | 0.3% | -2.4% | 3.4% | -0.7% |
| 1 month | -2.1% | -4.9% | -1.0% | 0.5% | 1.9% | -5.9% | 1.7% | -2.6% |
| 3 months | 5.5% | 0.7% | -5.8% | 8.9% | 1.9% | 8.1% | 4.3% | 1.4% |
| 6 months | 3.4% | -2.5% | -3.9% | -7.7% | 3.7% | 16.8% | 1.7% | 4.7% |
| 1 year | -12.1% | -15.2% | -6.2% | -14.9% | -13.0% | 8.4% | 1.8% | -5.7% |
| 2 years | -11.1% | -29.9% | -17.3% | 22.3% | -16.0% | 26.5% | 8.3% | -3.2% |
| Annualised | 16.5% | 6.6% | -1.4% | 23.4% | 1.1% | 19.5% | 13.2% | |
| Risks | ||||||||
| Max Drawdown | -27.2% | -36.6% | -32.4% | -26.7% | -32.9% | -18.4% | -17.1% | |
| Avg Holdings | 11.3 | 10.9 | 11.3 | 9 | 10.1 | 13.1 | 13.2 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
