In my article last week I discussed the conclusions Alex and I reached in our search for data-backed insights we could use to find winning high yield shares.
You can read the full article here, but the main actionable insight was highlighted by this chart:
In short, a combination of quality and momentum has delivered the best results over the last 10 years in the high yield segment.
I promised last week that I would share a screen to help find dividend shares fitting the profile above and take a look at some examples.
Winning high-yield stock screen
Using the factor ranks in screening rules allows us to abstract much of the detail required to define quality or momentum. With the chart above as a starting point, it’s possible to make a very simple screen indeed.
The chart specifies a lower limit for both Quality and Momentum Ranks of 70. I’ve used 65 to avoid having too much of an arbitrary cut off close to the threshold – I’m not sure it’s meaningful to say a Quality Rank of 71 is better than one of 69 and I don’t want to rule out stocks unnecessarily.
The median dividend yield shown on the above is 6%. This refers to the median yield in the top quartile of highest-yielding UK stocks. The lower yield limit of this quartile was 3.5%, at the time of our data snapshot.
In the current market I think 4% is a more realistic threshold for high yield, so in the spirit of compromise and inclusivity I’ve opted for 3.8%. This rule might need to be altered if market conditions change significantly in the future.
Here’s a snapshot of the screen rules I’ve used:
You can see and modify this screen here.
Screen results
At the time of writing, these rules return 63 UK stocks. Narrowing this down to company’s with a StockRank of 80 or higher reduces this total to 53.
Of these, a number are also members of our Stockopedia model portfolios at the time of writing:
Portfolio | Winning High-Yield screen shares included (10/03/25) |
NAPS | MTI Wireless Edge (LON:MWE), Stelrad (LON:SRAD), TP Icap (LON:TCAP), |
