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% | 1.9% | 3.1% | -0.6% | -0.6% | 0.6% | -0.6% | 1.1% |
| 1 month | 1.7% | 6.4% | 2.8% | -4.1% | -0.8% | -3.2% | 1.5% | 0.6% |
| 3 months | 2.4% | -3.2% | 15.3% | 3.4% | -5.1% | 3.1% | 7.9% | 4.9% |
| 6 months | 1.6% | -4.8% | 5.6% | 1.0% | -12.1% | 1.2% | 6.3% | -0.3% |
| 1 year | 10.5% | -6.2% | -7.4% | 39.1% | -12.6% | 13.9% | 10.0% | 3.9% |
| 2 years | 26.9% | -4.6% | -9.4% | 101.1% | -3.1% | 49.0% | 21.5% | 14.7% |
| Annualised | 20.7% | 11.4% | 0.8% | 42.8% | 5.6% | 22.7% | 21.1% | |
| Risks | ||||||||
| Max Drawdown | -18.9% | -26.8% | -30.4% | -13.3% | -15.4% | -18.4% | -17.1% | |
| Avg Holdings | 11.6 | 10.9 | 11.2 | 9.6 | 10.6 | 13.2 | 13.3 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.
