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 | -3.7% | -1.4% | -2.1% | -3.4% | -1.2% | -2.7% | -0.1% | -1.5% |
| 1 month | -2.0% | -1.4% | -1.1% | 1.0% | -2.5% | 2.6% | -3.0% | -1.4% |
| 3 months | -11.2% | -12.7% | -10.4% | -12.4% | -16.3% | -3.6% | -9.7% | -8.5% |
| 6 months | -16.0% | -15.0% | -1.4% | -9.1% | -16.1% | -5.2% | 0.4% | -10.7% |
| 1 year | -4.8% | -17.3% | -3.6% | 9.9% | -19.7% | 1.6% | 2.7% | -6.0% |
| 2 years | 5.6% | -24.4% | -21.4% | 60.9% | -15.4% | 33.5% | -0.4% | 2.5% |
| Annualised | 17.2% | 7.4% | -1.0% | 31.5% | -0.1% | 17.4% | 15.2% | |
| Risks | ||||||||
| Max Drawdown | -18.9% | -33.5% | -30.4% | -20.3% | -25.3% | -18.4% | -17.1% | |
| Avg Holdings | 11.4 | 10.9 | 11.3 | 9.5 | 10.5 | 13 | 13.2 | |
| Diversification | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | Moderate | |
