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:
Results are sorted by:
And limited to the first 14 Results
| Returns |  |
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FTSE 100 |
|---|---|---|---|---|---|---|---|---|
| 1 week | -1.7% | -3.2% | 3.5% | 1.4% | 0.1% | 1.6% | 0.3% | -0.6% |
| 1 month | 2.5% | -7.1% | 10.0% | 0.6% | 0.6% | 3.9% | 4.9% | 4.8% |
| 3 months | 5.9% | -2.5% | 8.8% | 5.7% | -2.7% | 3.2% | -0.7% | 6.7% |
| 6 months | 11.6% | -5.4% | 1.3% | 19.5% | -5.0% | 9.1% | 3.6% | 4.3% |
| 1 year | -0.2% | -19.4% | -11.5% | 49.1% | -3.5% | 17.8% | 5.3% | 2.8% |
| 2 years | 17.2% | -5.1% | 0.8% | 132.1% | 17.2% | 69.0% | 41.1% | 24.3% |
| Annualised | 21.6% | 11.3% | 0.2% | 48.2% | 8.6% | 25.9% | 18.9% | |
| Risks | ||||||||
| Max Drawdown | -18.9% | -22.5% | -30.4% | -13.3% | -12.2% | -18.4% | -17.1% | |
| Avg Holdings | 11.6 | 10.9 | 11.2 | 9.4 | 10.7 | 13.2 | 13.4 | |
| 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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Ticker | Name | Mkt Cap £m | % 3m EPS Upgrade FY2 | ROE % | P/E Rolling 1y | Gross Gearing % | Yield % | Beta | Spread (bps) | Spread (bps) | Flag |
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