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My Income/Growth Portfolio (IGP) has the following objectives:

1. generate above average dividend income
2. provide reasonable growth potential
3. preserve capital when market conditions are unfavorable

1. I want to own good yielding stocks of relatively large companies which are highly profitable and where profits are trending up. I scan over 2000 US listed stocks, ranking stocks based on the following criteria:
   
   • Return on equity
   • Return on assets
   • Dividend yield relative to industry peers
   • Earnings revisions
   • Market capitalization
   
   
2. From my initial screen, I pick the 20 best names that have a Value Line Timeliness rank and a Value Line Safety rank of 3 or better and assign an initial 4% weight target for each stock.
   
3. Each stock weight is then adjusted in the following manner:

• A Value Line Timeliness rank of 1 = +2.0% wt
• A Value Line Timeliness rank of 2 = +1.0% wt
• If no VL Timeliness rank = –1.0% wt
• Zacks rankings:
  
  • #1 = +2.0% wt
  • #2 = +1.0% wt
  • #4 = –2.0% wt
  • #5 = out
  
  
• If a stock is also part of Zacks Growth & Income or of Zacks Timely Buy portfolio = +1.0% wt
• Value Line Technical rank:
  
  • #1 = +2.0% wt
  • #2 = +1.0% wt
  • #4 = –2.0% wt
  • #5 = out
  
  

Each stock weight in the portfolio can thus vary between 2.0% (set minimum weight) and 8.0% (set maximum weight). Cash is raised by weight reductions (or stock eliminations when rank = 5) stemming from less attractive technical ranking from Zacks and Value Line. This is a timing tool to prevent being fully invested in poor markets.

In effect, with 20 stocks at 4% each, I start with a portfolio that is 80% invested. This can increase if particular stocks offer more positive fundamental (Value Line and Zacks ranking) or technical characteristics. It can also on poor technical trends, helping preserve capital in poor markets.

Screens are done regularly and adjustments are made immediately when a stock condition changes. I will post transactions after completion for your information only.
Please note that this is a real portfolio for my own personal use, that I post for your information only. In no way it is meant to recommend buying or selling any securities. Please read the disclaimer.