Dividend Growth Strategy
A dividend-oriented strategy inspired by the investing philosophy of investor Austin Hankwitz. This fund invests in the top 24 stocks ranked on the highest dividend yield and aggressive dividend yield growth rate over the last 5 years.
Fund
217.01%
vs
Benchmark
174.43%
*Vertical reference line denotes the end of simulated backtest data and the start of live performance data.
** Performance data is calculated using the average returns of all accounts with more than $100 invested in this strategy.
Fund Holdings
Fund details
Stats
2.68/5
Risk score
Max draw down (of range)
Daily Sharpe (of range)
Daily Volatility (of range)
Monthly Volatility (of range)
85.00%
Correlation to S&P (total)
Description
This rules-based strategy selects stocks from the S&P 500 with at least a 3% dividend yield, then invests toward the top 20 who’ve demonstrated the most aggressive dividend growth rates over the last 5 years. When backtested to 2012, this strategy produced on average a 4.36% annual dividend yield, and a +10.16% annual dividend growth rate. Assuming dividends reinvested, this strategy outperformed the S&P 500 by +86% during that same period of time.
Key Considerations
This strategy is less aggressive than many on Quantbase, as evidenced by a low risk score. This means that it may achieve lower absolute returns as a result, but remains especially strong in bear market conditions and displays lower levels of volatility.
Dividends in this fund are reinvested as they are accrued.
High dividend yields may indicate that a business is in distress, or that a stock has fallen in price sharply relative to its dividend. We assess the dividend yield alongside the dividend growth rate over the last 5 years to detect firms with consistent and aggressive growth in their prospects to screen for healthy dividends, but these risks remain. This strategy invests in fractional shares when available. When not available, it will invest in the nearest (lower) whole number of shares. Please note that this number may be 0 if your investment in this strategy is sufficiently low, meaning our investment strategy advertised returns will be different from your returns.