Stocks with High Dividend Yields Beat the Market
Stocks with high dividend yields beat the market, according to my most recent study. Both investors of dividend stocks and investors of growth stocks can use dividend growth change to make inferences about a stock’s future https://seekingalpha.com/article/3530886-stocks-that-double-their-dividends-beat-the-market-by-17-percent
The question of price movement after the doubling of the dividend is then the focus of this study. We can use large dividend increases to accurately predict the future movements of a stock. The companies included in the study were those listed on the major exchanges and had at least one year between their dividend hike and today, allowing me to look at data as far as one-year out.
The question is the effect the doubling of the dividend will have on the stock. More interesting would be the prices of these stocks further out from the double dividend payout. The result: While the stocks acted as they should have for the ex-dividend date, the payment date, and one month after the payment date, they shot up in the following year. Not only were the prices of the stocks significantly higher but they were over one standard higher than they should have been had they followed the market.
#stockswithhighdividendyields
https://seekingalpha.com/article/3530886-stocks-that-double-their-dividends-beat-the-market-by-17-percent