2011 In A Nutshell
Bespoke Investment Group
January 6, 2012
We recently ran our decile analysis on the S&P 500 to see which stock characteristics impacted performance the most in 2011. Based on our analysis, it was dividend yield that mattered the most. As shown below, the three deciles (50 stocks in each decile) of stocks with the highest dividend yields are the only ones that averaged gains in 2011. The stocks in the seven remaining deciles all averaged declines, with the three lowest yielding (or stocks with no yield) deciles seeing the biggest losses. If you had a conservative portfolio of high yielders, chances are you outperformed significantly in 2011. If you had an aggressive growth portfolio, chances are you underperformed.
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