"Successful investing is anticipating the anticipations
of others."
- John Maynard Keynes
Why We Focus on Yield Investing
We Believe:
- Dividend yield provides downside risk protection and significantly reduces volatility.
- Dividend yield provides a meaningful portion of the market's return.
- Prospect of lower absolute returns increases the appeal of higher yielding stocks.
- Dividend yield offers concrete evidence of real earnings and provides the most reliable valuation measure.
Yield Performance Consistency Across Markets
Contribution to real returns (1950-2005) |
|||
| Yield contribution |
Dividend Growth contribution |
Valuation change contribution |
|
| (%) | (%) | (%) | |
| USA | 66 | 10 | 24 |
| UK | 58 | 32 | 10 |
| Germany | 32 | 63 | 5 |
| France | 65 | 18 | 17 |
| Italy | 91 | -8 | 17 |
| Spain | 55 | 32 | 13 |
| Netherlands | 61 | 26 | 13 |
| Switzerland | 54 | 22 | 24 |
| Japan | 65 | 5 | 30 |
| Average | 61 | 22 | 17 |
| Source: Dresdner Kleinwort Wasserstein | |||
Although information contained on this page is from sources deemed to be reliable, DePrince, Race & Zollo, Inc. does not guarantee the accuracy or completeness of such information.