Seeking Alpha

varan's  Instablog

varan
Send Message
Individual investor.
  • Dividend Growth Stocks 0 comments
    Aug 4, 2013 12:13 PM | about stocks: SDY

    The strategy of selecting, at the beginning of every year, the stocks whose growth of dividends was the highest during the prior five years (as described earlier in the year http://seekingalpha.com/instablog/709762-varan/1551391-an-annually-updated-and-a-permanent-portfolio-of-dividend-growth-stocks ) appears to be quite competitive.

    The equity curve for the strategy (called DG510 - 10 stocks selected on the basis of dividend growth during the prior five years) is compared in the following plot with that of SDY , the ETF based on the 50 dividend aristocrats. Also shown in the plot is the performance of PERMDG, the permanent portfolio of dividend growth stocks as described in the post referenced above. We note that the PERMDG is included only for the purposes of comparison, as the performance during the period 2006-2013 was included in historical data that was used to select this basket.

    Year to date the performance of DG510 has been quite satisfactory as shown in the table below.

    (click to enlarge)

     

    YTD Return (2013)

    CAGR (2006-YTD)

    Sharpe Ratio

    Sortino Ratio

    Maximum Drawdown

    DG510

    29%

    13.5%

    0.61

    1

    44%

    SDY

    23.4%

    7.15%

    0.31

    0.46

    50%

    PERMDG

    20.7%

    9.8%

    0.44

    0.71

    42.5%

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Dividend growth stocks Stocks: SDY
Back To varan's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.