Barron’s recently ran an article (written by Research Affiliates), which is titled “Get Smart About Picking Dividend-Rich Stocks.” The article highlights that high-quality high-dividend-paying stocks outperform low-quality high-dividend-paying stocks. The quality of the firm is measured by profitability, financial distress, and accounting red flags.
Takeaways: The top quintile of dividend paying firms outperformed the universe over the past 50 years when comparing CAGR, Sharpe and Sortino ratios (comparing column 3 to column 4). Splitting high dividend-paying firms by value worked historically. Column 1 (top dividend payers, high value) outperformed column 2 (top dividend payers, low value) across all performance measures — CAGR, Sharpe and Sortino ratios. The results suggest that a sort on a simple value investing measure works well at sorting dividend stocks. Compared to the more complex quality screen proposed by Barron’s, this sorting variable is a good alternative for investors who prefer high dividend stocks.
Source: ValueWalk
Related Articles:
- Why Dividends Matter
- 26 Income Securities For A Well-Rounded Asset Allocation
- International Diversification May Be Closer than You Think
- 10 Small/Mid-Cap Dividend Growth Stocks Answering The Call
- Free Cash Flow Payout vs. Dividend Payout
Dividend Growth Stocks News
- My Top 10 High-Yield Dividend Stocks For August 2025: One Yields 11%-Plus - Seeking Alpha - 8/10/2025
- 3 Undervalued Dividend Stocks for Passive Income Investors to Buy in August - sharewise.com - 8/10/2025
- 2 High-Yield Dividend Stocks You Can Buy With $100 Now and Hold at Least a Decade - sharewise.com - 8/10/2025
- Battle of Dividend Stocks: Microsoft vs. Meta Platforms - The Globe and Mail - 8/8/2025
- 5 Dividend Stocks to Hold for the Next 5 Years - sharewise.com - 8/10/2025
- Nucor Corporation (NUE) Dividend Stock Analysis - 8/8/2025
- Raytheon Technologies Corporation (RTX) Dividend Stock Analysis - 7/31/2025
- Duke Energy (DUK) Dividend Stock Analysis - 7/25/2025
- Chevron Corporation (CVX) Dividend Stock Analysis - 7/18/2025
- Emerson Electric Co. (EMR) Dividend Stock Analysis - 7/11/2025
High Dividend Stocks And Value Investing
Posted by D4L | Tuesday, July 14, 2015 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.