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 | 0.4% | -2.0% | 0.4% | -1.8% | 0.6% | -0.1% | 0.9% | -0.2% |
| 1 month | 2.0% | -1.9% | 4.3% | -2.5% | 1.9% | 6.1% | 6.3% | 2.5% |
| 3 months | 1.6% | -1.9% | 0.8% | -3.2% | 2.0% | 2.1% | 8.2% | 1.3% |
| 6 months | 15.7% | 3.1% | 1.0% | -5.3% | 6.4% | 24.3% | 10.3% | 9.2% |
| 1 year | -5.9% | -12.3% | -4.6% | -16.6% | -7.5% | 18.1% | 2.5% | -1.7% |
| 2 years | 3.0% | -19.1% | -15.1% | 14.6% | -19.6% | 32.5% | 12.6% | 2.1% |
| Annualised | 16.5% | 6.8% | -0.9% | 21.2% | 1.6% | 21.0% | 15.0% | |
| Risks | ||||||||
| Max Drawdown | -27.2% | -36.6% | -32.4% | -26.7% | -32.9% | -18.4% | -17.1% | |
| Avg Holdings | 11.3 | 11 | 11.2 | 8.8 | 9.9 | 13.1 | 13.1 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
