January High-Yield Momentum Portfolio Update
By Scott's Investments:Once per month I update a high-yield dividend stock momentum portfolio on Scott's Investments. The portfolio comprises the high-yielding stocks in the S&P 500 with high price momentum. I screen the S&P 500 for stocks yielding greater than 4%, and then rank the results by 6 month returns. This month there were 53 results versus 52 results last month. The top stocks are then added to a hypothetical portfolio and tracked publicly on Scott's Investments.Per a previous article, the highest momentum, high-yield stocks have historically outperformed lower-yielding, lower-momentum stocks. The screen is more of a trading strategy and less of a passive 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 but I have added a modification to the strategy to minimize turnover.In order to limit turnover, stocks with yields thatComplete Story »
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