A High-Dividend-Growth, Low-Payout-Ratio Portfolio
By Jeff Paul:In my previous article, I discussed recent research that shows that high-yield, low-payout stocks outperform the overall market in total return, as well as other yield-payout groups. This article focuses on the construction of a High-Yield, Low-Payout dividend growth stock portfolio by applying a screening process to the CCC stock list.Because we are so close to the beginning of the year, I decided to use the December 31, 2011, CCC list and give this virtual portfolio a starting date of January 1, 2012. This will allow for a full year of data, and make it more comparable to my other dividend growth portfolio models. The portfolio will contain 30 stocks with $10,000 invested in each one.
Determining "High" and "Low"
In the research, stocks were sorted into high, medium, and low groups based on yield and payout. No specific cutoff numbers were given, though the appendix does say thatComplete Story »