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 | 5.1% | 3.4% | 20.8% | 4.6% | 12.7% | 1.5% | 10.2% | 11.4% |
| 1 month | -32.9% | -25.3% | -23.8% | -23.3% | -35.5% | -10.2% | -32.4% | -15.5% |
| 3 months | -49.0% | -34.0% | -35.7% | -25.4% | -27.4% | -16.8% | -39.9% | -26.7% |
| 6 months | -41.3% | -28.5% | -38.0% | -26.5% | -29.1% | -14.5% | -38.0% | -24.9% |
| 1 year | -37.5% | -27.6% | -35.7% | -38.8% | -22.5% | -11.1% | -34.0% | -23.6% |
| 2 years | -42.2% | -40.3% | -35.3% | -43.8% | -32.7% | -1.6% | -33.4% | -21.2% |
| Annualised | 7.8% | 1.0% | -8.8% | 4.6% | -5.7% | 12.1% | -1.2% | |
| Risks | ||||||||
| Max Drawdown | -56.0% | -53.9% | -61.8% | -52.6% | -48.8% | -21.0% | -47.8% | |
| Avg Holdings | 10.9 | 10.9 | 10.8 | 8.4 | 8.7 | 12.9 | 12.7 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
