Insights: The Devil is in the Dividend Methodology

Click here for our Insights on Dividend Methodologies.                                                                                                                                                                                                                                                                                                                                                                                                                                               

Dividends are perennially popular strategies, even more so in this era of low yields.

Some dividend methodologies are highly effective, while others might select stocks in distress and not actually produce high dividend yields.

We grouped dividend strategies into similar types and found that methodologies using cumulative dividends, or a dividend sustainability screen are significantly more effective than those that just examine historical dividends or projected dividends.

Cumulative dividend and dividend sustainability screen methodologies had significantly higher returns, lower volatility, lower drawdowns and rated better!

See our ratings for more details.

 Dividend   Methodology

 Group    Average   Rating

 10 Year       Annualized   Return

 10 Year   Annualized   Volatility

 Group   Return/Vol     (All periods)

 Group Max   Drawdown  (Last 3 years)

 Cumulative  Dividends Used

  Gold

 11.0%

 16.3%

 0.34

  -34%

 Dividends   Sustainability   Screen

  Silver

  11.3%

  15.8%

  0.24

  -37%

 Historical &   Projected Dividend

  Copper

  8.1%

  18.8%

  0.00

  -40%

 Historical Dividend

  Neutral

  7.9%

  18.1%

  0.05

  -38%

 

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