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) | 740% | 1770% | 57% |
| Russell 2000 Value Index (1994) | 598% | 1131% | 47% |
| MSCI Emerging Markets Index (1988) | 1115% | 2571% | 57% |
Cumulative Performance as of December 31, 2019 since the inception of each index.
*The percentage represents dividends’ contribution to total return.