Dividend-Growth as a Defensive Equity Strategy
12 Pages Posted: 8 May 2013
Date Written: March 1, 2013
Volatility in asset returns acts as a drag on annualized average performance and ending wealth values. Investment strategies that seek to simultaneously reduce volatility and earn excess returns offer the opportunity to improve the return-risk ratio and the decision framework of institutional investors. Reduced-volatility equity strategies utilizing dividend-growth in the stock selection process are shown to have historically provided a boost to risk-adjusted performance.
Keywords: dividend-growth strategy, defensive equity strategy, volatility
JEL Classification: G00, G10, G11
Suggested Citation: Suggested Citation