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No. of Recommendations: 15
Just trying out the new version of Zacks backtester.
Lots of new features with different hold periods, a
longer backtest and a blending of screens capability.

Anyway, I was looking at some screens back to 1999.
Here's an easy one that does quite well with a
12,24 or 52 week hold. Since it selects dividend paying
stocks, you can also add in the dividend check to
the CAGR.

1) Volume >50K
2) Price >5
3) Zacks <=2 (buy or strong buy)
4) P/E using 12 mos. EPS >0
5) Dividend Yield % / P/E using 12 mos. EPS top 25
6) Payout ratio bottom 10
7) 52 week return top 5

So the results below are for a 5 stock, 52 week hold, starting
at the beginning of the year. Seems to do
well in both good and bad times. (There are many good MI/VL
versions of this screen, but I like the overall CAGR and low
drawdown that this one produces for various hold periods.)

It's almost a "set it and forget it" screen or at the least,
a good one to add to your current portfolio.
Date  Tot Return of Portfolio %  S&P 500 Tot Return %
2000 67.4 (10.1)
2001 31.8 (12.1)
2002 30.8 (24.6)
2003 41.0 27.0
2004 22.3 12.0
2005 19.4 6.5
2006 20.9 12.9

This screen took a $10K investment up to $71.8K in the 7 years
while the S&P took the $10K up to $10.2 and your $10K invested
in the Nasdaq has lost 40% of its value(gulp...)

Here's the details of the stocks picked and their 52 week returns.
The far right column is what the average of the 5 did and
should correspond with the table above
Period  Date        Ticker   Ticker Return %   Portfolio Return %
1 12/31/1999 EPD 86.7 67.4
1 12/31/1999 DCOM 46.2 67.4
1 12/31/1999 RY 63.0 67.4
1 12/31/1999 PPL 104.7 67.4
1 12/31/1999 ETP 36.6 67.4
2 12/29/2000 DHI 53.4 31.8
2 12/29/2000 FBC 37.0 31.8
2 12/29/2000 SUN 15.2 31.8
2 12/29/2000 MRO 12.1 31.8
2 12/29/2000 CTR 41.4 31.8
3 12/28/2001 FDP 34.0 30.8
3 12/28/2001 AHM (6.4) 30.8
3 12/28/2001 NYB 33.0 30.8
3 12/28/2001 FBC 78.8 30.8
3 12/28/2001 RF 14.8 30.8
4 12/27/2002 NEWC 132.9 41.0
4 12/27/2002 ETR 26.8 41.0
4 12/27/2002 CTR (0.5) 41.0
4 12/27/2002 WM 17.0 41.0
4 12/27/2002 WFSL 28.8 41.0
5 12/26/2003 STC 8.0 22.3
5 12/26/2003 GGP 35.2 22.3
5 12/26/2003 NDE 18.9 22.3
5 12/26/2003 JPM 11.9 22.3
5 12/26/2003 SLF 37.3 22.3
6 12/24/2004 TNP 2.0 19.4
6 12/24/2004 STO 46.3 19.4
6 12/24/2004 CBL 11.2 19.4
6 12/24/2004 GGP 38.1 19.4
6 12/24/2004 OKE (0.8) 19.4
7 12/23/2005 PCU 64.8 20.9
7 12/23/2005 AEG 16.0 20.9
7 12/23/2005 TEG (1.6) 20.9
7 12/23/2005 CBL 7.5 20.9
7 12/23/2005 AEP 17.9 20.9

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No. of Recommendations: 1
I pay for Zacks Elite and get to use the screener with current ratings, but there is no way, I can see, to put in this step:

"5) Dividend Yield % / P/E using 12 mos. EPS top 25"

Just wondering if any one else has a way around this?

Things,
David
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No. of Recommendations: 1
David,

Well, in a pinch, I guess you could print out all
the stocks that meet the first 4 criteria along with
values of the variables required in the rest of the steps;
drop them into excel and do the steps from #5 on with
calculation and sorting (assuming that Elite give you
access to those variables)

And I assume also that you realize that the equation in question
is nothing more than the Div yield divided by the Price Earnings ratio,
if that is what you are questioning. The Research Wizard
permits formulas in their screen.

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No. of Recommendations: 1
Can this screen be reproduced in Reuters or Moneycentral?
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No. of Recommendations: 1
ep001-
The dividend screen that I posted used a Zacks rating.
So for the MSN screener you could substitute their Scout Ranking,
not sure about Reuters (avg. broker score, maybe??) -
but they can't be backtested- as far as I know.
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