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Winning Growth & Income 14 Qualifying

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.

To learn more about this strategy please click here »

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:

  • % 3m EPS Upgrade FY2 > 0
  • ROE % > 1.002 x Median ROE %
  • P/E Rolling 1y < Median P/E Rolling 1y
  • Gross Gearing % < 100
  • Yield % > Median Yield %
  • Beta < 1
  • Mkt Cap £m > 20

Results are sorted by:

  • Yield % in descending order


And limited to the first 14 Results


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Performance Tracking


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.



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14 Qualifying