| GROWTH AND INCOME DETAILS |
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This Growth and Income Strategy is pretty straightforward, yet amazingly profitable. The goal is to find solid companies paying out extraordinary dividends. With money market rates being so low, we think many investors will find appeal in this strategy with minimum dividend yield of 8% plus attractive equity appreciation potential. This screen has the least turnover of any of the Profit Tracks and has shown excellent results with both 12- and 24-week holding periods.
Investors who are concerned about too much REIT exposure in this type of strategy need not be worried. Backtesting results show strong returns even when REITs are completely excluded.
Below you will find all the Parameters used in this strategy as well as detailed Performance information.
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| PARAMETERS
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Current Dividend Yield >= 8%: This is the biggest hurdle as the average stock on the S&P 500 pays out less than 2% dividend yield. Companies that pay dividends are generally considered more stable and secure.
Zacks Rank <= 3: This includes stocks with a Zacks Rank of Strong Buy, Buy and Hold. The key being that we didn?t want any with Sell ratings. What's so special about the Zacks Rank? Learn more here.
Market Cap >= $500 million: With the concept of finding more stable companies we did not want much exposure to small cap issues.
Price >= $10: Similar to Market Cap parameter, just don't want penny stock type companies to enter the list.
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To see the list of stocks that currently pass this winning screen CLICK HERE
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All the Profit Track strategies were created and backtested using the Research Wizard software from Zacks Investment Research. If you like this Growth and Income strategy but want to narrow down the list of stocks and even improve the performance, then you should start a free trial to the this powerful stock picking tool. Learn more about the Research Wizard and Free Trial offer.
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Trading Profit Tracks and Calculating Performance
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The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.
The performance calculations for the Profit Track strategies were produced through the backtesting feature of the Research Wizard using the DBCMHIST database and consist of the total return (price changes + dividends) of an equal weighted portfolio. Returns are calculated on a specified periodic basis (four weeks for all Profit Track strategies except for Growth and Income and High Rank Value, which use a 24-week holding period) and assume no transaction costs. Each strategy is rebalanced at the start of each new period. Returns can be stated as either annualized or compounded.
Stock trading/investing involves risk and you can lose some or all of your investment. Hypothetical or backtested results may not always be duplicated in the real world. Backtesting can at times produce an unintended look-ahead bias. Results can also at times be over or understated due to the exclusion of inactive companies. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading, not the least of which is the ability to withstand losses or to adhere to a particular trading strategy in spite of trading losses. These are material points which can also adversely affect actual trading results. The backtested results prepared for the Profit Track strategies were done using the DBCMHIST database and consisted of only active companies. The Research Wizard program has been aligned, to the extent possible, to eliminate look-ahead bias. Zacks however cannot make any guarantees in regard to this or any other possible limitation.
Performance information for other Zacks. portfolios and strategies is available at http://www.zacks.com/performance
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