Approximately once per month I will be running a high-yield momentum screen and post the results. Last month's results are here. I should point out two things based on some previous comments on this screen. First, it is more of a trading strategy and less of an income strategy, although the dividends do play an essential component in the overall returns. Thus, turnover could be high and the strategy is not for everyone. Second, it is a screen and not a recommended or comprehensive portfolio. In other words, there could be sector imbalances so for investors looking to have exposure across different sectors and asset classes, this screen could potentially serve as a starting point for further research or one small piece to a much larger picture.
The first screen looks for high yielding high momentum stocks. I screened the S&P 500 for stocks yielding greater than 4% and then ranked them by 6 month returns. There were 51 results and per a previous article, the highest momentum, high yield stocks have historically been the best performing so I have listed the top 20% (based on 6 month returns) of results, or 10 stocks (rounded). You will see many of the same names on this months list as December's list (KIM, AVB, and TE are the new additions):
| Ticker | Company | Marketclub Trend Score (-100 to +100) | Dividend Yield | Performance (Half Year) | Price |
| RRD | R.R. Donnelley & Sons Company | 85 | 4.55% | 89.56% | 22.88 |
| PLD | ProLogis | 65 | 4.34% | 82.21% | 13.83 |
| KIM | Kimco Realty Corporation | 100 | 4.58% | 54.54% | 13.97 |
| AVB | Avalonbay Communities Inc. | 80 | 4.47% | 48.06% | 79.94 |
| VTR | Ventas Inc. | 100 | 4.58% | 47.97% | 44.76 |
| TEG | Integrys Energy Group, Inc. | -55 | 6.50% | 41.21% | 41.87 |
| WIN | Windstream Corporation | -100 | 9.26% | 40.99% | 10.8 |
| TE | TECO Energy Inc. | 75 | 4.85% | 40.34% | 16.49 |
| HCP | HCP, Inc. | 55 | 6.06% | 39.36% | 30.38 |
| DTE | DTE Energy Co. | 100 | 4.79% | 39.01% | 44.29 |
| RAI | Reynolds American Inc. | 90 | 6.66% | 38.66% | 54.02 |
The second screen looks for stocks in the S&P 500 yielding greater than 4%, with a payout ratio less than 50%. An explanation of the reasons behind the strategy is here. I have included some additional momentum columns for information purposes. EXC and PEG were on last month's list, MRK has been removed from last month's list:
| Ticker | Company | Marketclub Trend Score (-100 to +100) | Dividend Yield | Payout Ratio | 200-Day Simple Moving Average | Price |
| PEG | Public Service Enterprise Group Inc. | 55 | 4.05% | 45.07% | 5.69% | 32.82 |
| EXC | Exelon Corp. | -85 | 4.28% | 49.65% | 1.70% | 49.08 |
Author's Disclosure: No Positions
