Duplicate

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


Can these rules be improved? Submit a suggestion »
Want to make your own version? Create a Duplicate

Performance Tracking


Returns FTSE 100
1 week 3.1% -0.8% -0.3% -3.0% 0.0% -0.4% -1.3% -1.6%
1 month 5.1% -1.3% 1.7% -7.7% 6.2% -1.0% -2.7% 0.9%
3 months -10.0% -3.5% -2.6% -3.7% -4.0% 2.8% -3.9% -3.1%
6 months -18.8% -16.2% -6.3% -12.1% -13.5% -4.8% -7.7% -10.4%
1 year -17.5% -21.4% -3.0% -12.2% -23.7% -4.5% -2.8% -11.5%
2 years -9.9% -31.5% -24.9% 34.1% -24.5% 26.0% -10.6% -5.3%
Annualised 15.6% 6.7% -1.2% 27.4% -0.6% 15.8% 13.4%
 
Risks
Max Drawdown -27.2% -36.6% -32.4% -20.3% -32.9% -18.4% -17.1%
Avg Holdings 11.4 10.9 11.3 9.4 10.4 13 13.3
Diversification Moderate Moderate Moderate Moderate Moderate Moderate Moderate