Zacks.com Featured Expert Kevin Matras Highlights the Following Stocks: American Capital Strategies, Compania de Telecom de Chile, and Annaly Mortgage Management.

CHICAGO -- Zacks.com releases it's exclusive Screen of the Week report that highlights another successful stock picking strategy developed with their Research Wizard software. This week, Kevin Matras goes over a winning, longer term, dividend investment strategy. Stocks in this week's screen are: American Capital Strategies, Ltd. (NASDAQ:ACAS), Compania de Telecom. de Chile (NYSE:CTC) and Annaly Mortgage Management, Inc. (NYSE:NLY). Click here for the full story exclusively on Zacks.com: http://at.zacks.com/?id=109

Screen of the Week written by Kevin Matras of Zacks Investment Research:

"A Simple Dividend Strategy with Extraordinary Returns"

This week, Kevin Matras is going to focus on a simple dividend strategy that has produced some amazing results over the last few years. Since it's a dividend paying strategy, he's incorporated a longer holding period (12-24 weeks). This strategy is both easy to build and easy to use with the Research Wizard.

The parameters to this screen are as follows:

Price greater than or equal to $10
Market Cap greater than or equal to $500 mil.
Zacks Rank less than or equal to 3 (1, 2 or 3 -- no sell ratings
allowed)
Current Dividend Yield greater than or equal to 8%

Kevin ran a series of tests using a 24 week holding period over the last 4 years. Each test was started on a different start date to eliminate coincidental performance and to verify robustness. Every test showed impressive results.

In 2001, the average annualized gross return was 33.1%. Every 24-week period in each test (4 tests) came out a winner (i.e. 100% win ratio). In 2002, the average annualized gross return was 21.9%. The average win ratio came in a 75%. In 2003, the average annualized gross return was a whopping 50.8%, with every 24-week period again scoring a win (100% win ratio). And in 2004 (YTD thru 12/3/04), the average annualized gross return so far is 21.2% with a 67% win ratio.

Over the last 4 year time span, the average annualized gross return comes in at 28.7% a year. And the cumulative, compounded gross returns since Jan. 2001, shows an impressive 179.7%.

Kevin also ran a series of tests rebalancing the portfolio every 12 weeks. These results also showed well with an average annualized gross return of 30.5% year over the last 4 yrs. (But of course, rebalancing more frequently would have cost more in commissions and the possibility of missed dividends.)

Either way, this Dividend Strategy has been a consistent performer through the ups and downs of the market over the last 4 yrs. (And hopefully in the years to come.)

Currently, there are 17 stocks that qualify this screen (12/20/04). Here are some current names on that list:

ACAS  American Capital Strategies, Ltd.
CTC   Compania de Telecom. de Chile
NLY   Annaly Mortgage Management, Inc.

Want to know what it picks next week? Then sign up for your free trial to the Research Wizard now http://at.zacks.com/?id=111

About Screen of the Week

Zacks.com created the first and best screening system on the web earning the distinction as the "#1 site for screening stocks" by Money Magazine. But powerful screening tools is just the start. That is why Zacks created the Screen of the Week to highlight profitable stock picking strategies that investors can actively use. Each week, Zacks Profit from the Pros free email newsletter shares a new screening strategy. Learn more about it here http://at.zacks.com/?id=112

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind Zacks work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. The goal is to unlock these pros' profitable insights for individual investors hard-pressed to find this valuable information in one source. A free subscription to "Profit from the Pros" weekly e-mail newsletter provides the best way to use these experts' insights for more profitable investing. Register for a free subscription to the Profit from the Pros newsletter at http://at.zacks.com/?id=113

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.