No. of Recommendations: 4
Mungofitch posted:
What would be interesting as an overlay:
An equally weighted portfolio of the universe of qualifying dividend payers that the YEY portfolio was using.Here is the rolling 3-year graph with the addition of the qualifying dividend payers.
So the graph has the SP500 total return, YEY_SI top 10, and YEY-SI according to this screen:
https://gtr1.net/2013/?~YLDEARNYEAR_SI:s19870302h2...Comparing to the standard YEY-SI screen
https://gtr1.net/2013/?~YLDEARNYEAR_SI:h21::styp.a...Steps 4,5,6 are omitted, meaning without the ratio of dividend yield to PE and without the final sort.
GTR1 reports that an average of 1144 stocks had a dividend yield > 0.
https://1drv.ms/i/s!AmCzJdeikH-cips9YcAol_W97JOq5g...It is clear that the ratio(cdy,cpe) top 10% and the final sort have a very large impact on the result.
Without those, the screen is a tad bit better than the S&P, but not a lot.
Other than that, I'm not sure what the conclusions are.
There was a period 1990-1997 where YEY_SI outperformed greatly, but the dividend yielders were just about the same as the index.
So in that period, the final steps added much value.
However, in 2016-2022 that is not the case, FWIW.
Mark
