Yield. Valuation. Fundamentals.

Yield Investing

We Believe:

  • Dividend yield provides a meaningful portion of the market’s total return.
  • Dividend yield offers concrete evidence of real earnings and provides the most reliable valuation measure.
  • The return of cash to shareholders in the form of dividends encourages capital allocation discipline. 

The Importance of Dividends

  Price Return (Ex-Dividends) Total Return Difference=Dividends*
Russell 1000 Value Index (1991) 662% 1465% 55%
Russell 2000 Value Index (1994) 582% 1054% 45%
MSCI ACWI Ex-US Small Index (2000) 218% 378% 42%
MSCI Emerging Markets Index (1988) 1158% 2522% 54%
Cumulative Performance as of December 31, 2017 since the inception of each index.
*The percentage represents dividends’ contribution to total return.