Data that I have reviewed over several years has indicated that when a list of dividend paying stocks is created, the low yield stocks consistently outperform the high yield stocks, all else being equal.
After reviewing the work on The Part-Time Investor's Raw Data page dated July 7, 2019 (found here: https://seekingalpha.com/instablog/541113-the-part-time-investor/5324516-raw-data-finding-undervalued-dividend-aristocrats-article ), I decided to rank the stocks in the period covering January 2, 2001 to September 3, 2019.
I ranked the stocks from lowest yield to highest yield (blue column) in both categories as presented by The Part-Time Investor as being either undervalued (or HIGH PAAY) and overvalued (or LOW PAAY).
I then obtained the current closing price as of September 3, 2019 and generate the percentage change from the listed January 2, 2001 price.
Below is the returns for the undervalued (or HIGH PAAY) when ranked by dividend yield from lowest to highest (blue column).
In this case, because the number of companies was 15, I decided to show the performance of the first seven stocks with the intention of avoiding having the first eight stocks include the +637.94% return for GWW which would tilt the performance in favor of the top "half." The return for the top seven was +336.96% while the bottom eight gained +206.48%.
Below is the returns for the overvalued (or LOW PAAY) when ranked by dividend yield (blue column) from the lowest to the highest.
In reviewing the overvalued stocks (LOW PAAY) we can see that the top 7 gained +160.55% while the bottom eight gained +174.55%. On the whole, a single stock, (VFC), carried the remaining seven stocks that were a part of the bottom 8 grouping for LOW PAAY. Had VFC increased to $71.68 or less (a +776.75% increase), the entire group of the bottom 8 would have underperformed the top 7 stocks.
When arranging a list of Dividend Achievers or Dividend Aristocrats, it is always worth reviewing the long term prospects of holding those stocks with the lowest dividend yield over those with the high dividend yield.
Thanks to Part-Time Investor for publishing the raw data for review.