--%>

How form a portfolio with higher return/dividend

Does this make any sense to form a portfolio comprised of companies along with a higher return/dividend?

E

Expert

Verified

This is, in general. In Fernández and Bermejo (2008, in table) is shown that portfolios, formed at the starting of each year in the Spanish stock market, as per to the return per dividends, were significantly more profitable than the IBEX 35 and the complete index of the Madrid Stock Exchange.

1198_Fernández and Bermejo table.png

If can also be verified such the index IBEX Top Dividend had a return of 269.61 percent among December 1999 and December 2007 when the IBEX 35 had a return of 30.42 percent. The return upon the IBEX Top Dividend was higher than the IBEX all of such years except for 2007.

   Related Questions in Corporate Finance

  • Q : Did you see Vueling case Did you notice

    Did you notice the Vueling case? How is this possible that an investment bank sets the objective price of its shares in €2.50 per share upon the 2nd of October, 2007, just after replacing Vueling shares at €31 per share in J

  • Q : Problem on Stock per share value ABC

    ABC Company plans to buy back 1 million shares of its own stock from its cash reserves at $50 a share. This will raise the bankruptcy costs by $10 million, and the debt/assets ratio from 35% to 40%. The income tax rate of the company is 30%. Determine the value of the

  • Q : Mm ase Study 1 You work in Walt Disney

    ase Study 1 You work in Walt Disney Company's corporate finance and treasury department and have just been assigned to the team estimating later today. You quickly realize that the information you need is readily available online. 1) Go to http://finance.yahoo.com. under " Market Summary," you will

  • Q : Explain few Spanish mutual funds

    Is this true that very little Spanish mutual funds outperform their benchmark? Isn’t this strange?

  • Q : Who explained the high-peak/fat-tails

    Who explained the high-peak/fat-tails?

  • Q : Problem on price share and stock

    Brittney and Kim Wan Sun have successfully launched a successful talent agency, ABC. They expect the firm’s earnings and dividends to grow by 20% annually for the next 10 years and they establish a strong base and to grow at a constant 5% per year thereafter. AB

  • Q : Could we explain that the shares’ value

    Could we explain that the shares’ value is intangible?

  • Q : What is the Capital Cash Flow What is

    What is the Capital Cash Flow?

  • Q : What is the impact of auto portfolio

    What is the impact of auto portfolio into the quotation of the shares?

  • Q : Calculate valuation realized by

    Is a valuation realized through a prestigious investment bank a scientifically approved result that any investor could utilize as a reference?