Do high dividend yield stocks outperform other stocks?

TeknikalRaman

Finance & Business

POSTED BY: Ranjeet Kumar PUBLISHED: Jun 21, 22

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This is a question to which there is no conclusive answer

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But, to obtain a better picture, consider the total returns index of three separate indexes

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What is the total returns index, and what does it mean?

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 Index returns are typically calculated on a point-to-point basis, ignoring dividends.

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The dividend yield stocks have an edge over the Nifty and the Mid Cap index in the Total Returns Index (TRI),

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Here we have considered the TRI of 3 indices for the last 1 year between March 2017 and March 2018.

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ParticularsNifty IndexMid Cap IndexDividend Opportunities Index1 year returns15.31%20.59%15.87%

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As can be seen from the preceding study, the Dividend Yield Index has outperformed the Nifty as measured by the Total Returns Index (TRI)

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albeit it has underperformed the Mid Cap Index.