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Approximately once per month I run a high-yield momentum screen using the free service on Finviz and post the results. Last month's list is here and the strategy returned 3.96% before dividends with every stock having a positive return and 4.40% including dividends. SPY returned 1.58% and SDY, the S&P Dividend ETF returned 1.34% during the same time period. Before I get the usual hate mail from income investors, to reiterate, the screen is more of a trading strategy and less of an income strategy (unlike some of my dividend aristocrat screens), 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 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 59 results (versus 61 last month) 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, or 12 stocks. I listed the payout ratios for informational purposes, but I would always recommend researching payout ratios in-depth since one year of poor earnings (and vice versa) can skew the ratio significantly.

This strategy is one of several I track for free on the right hand column of my site:

Ticker

Company

Trend Analysis

Dividend Yield

Payout Ratio

Performance (Half Year)

Q

Qwest Communications International Inc.

Here

5.67%

126.14%

36.56%

HCP

HCP, Inc.

Here

5.35%

431.26%

29.62%

DD

EI DuPont de Nemours & Co.

Here

4.05%

47.76%

26.44%

VTR

Ventas Inc.

Here

4.22%

158.00%

25.30%

NYX

NYSE Euronext, Inc.

Here

4.07%

51.16%

23.69%

TEG

Integrys Energy Group, Inc.

Here

5.60%

103.70%

22.03%

D

Dominion Resources, Inc.

Here

4.19%

39.95%

20.85%

MO

Altria Group Inc.

Here

6.24%

83.19%

19.81%

SO

Southern Company

Here

5.08%

17.61%

KIM

Kimco Realty Corporation

Here

4.37%

49.90%

17.29%

TE

TECO Energy, Inc.

Here

4.83%

69.28%

17.10%

WIN

Windstream Corporation

Here

8.80%

148.07%

16.74%

Disclosure: No positions

Source: 12 High Yield Stocks