Supposedly Boring Dividend Screener
What kind of Companies are Returned by This Screener?
On average this screener returns anywhere for 5-10 stocks. This isn’t a lot of different investment opportunities to choose from, but what is here allows for a well-balanced, diversified portfolio.
And How Does this Strategy Fair Since 2000?
Backtesting the strategy over the past 16 years we can see that it has beat the S&P by a significant amount – returning an average of 1.42% monthly compared to the S&P’s 0.36%. This resulted in a total return of over 1,300%, or almost 18% annually. These results include both trading costs and dividends being reinvested as we go along.
A few other things to notice:
Since the S&P isn’t the best benchmark to use when looking for a long term dividend based investment strategy we went ahead and plotted the backtest of every stock that gives a dividend in comparison to our screener.
Though the pool of all dividend companies beat our strategy in the early years our strategy has consistently beat both the overall market and the pool of dividend companies – making more money in up years, and losing less money in down years.
Since 2000 you would have made a total of 285 trades. This cuts down on trading costs and commissions and allows you to capture more value from your investments. This strategy consistently presents 5-10 different positions for you to enter into each quarter, cutting down on risk and trading costs.
After going through the validation process on this screen I have personally fell in love with it. I was excited to feature it within our system and write this article, and now I am excited to implement this into the dividend side of my portfolio. Happy investing!
Standardized Validation Suite Passed by the Screener: