Many investors still work under the assumption that dividend yield is a good measure of value and that stocks with higher dividend yields should outperform stocks with lower yields in the long run.
Interesting data. I just read Factor Investing For Dummies and they also emphasize long holding periods and diversifying factors. The data set back to 1870 mentioned here is more impressive though!
I thought the ‘Dogs of the Dow’ strategy had a good track record. Intuitively it makes sense. Is the holding period of one year too short? Or is the strategy itself a myth?
Interesting data. I just read Factor Investing For Dummies and they also emphasize long holding periods and diversifying factors. The data set back to 1870 mentioned here is more impressive though!
I thought the ‘Dogs of the Dow’ strategy had a good track record. Intuitively it makes sense. Is the holding period of one year too short? Or is the strategy itself a myth?