The Stable Dividend portfolio favours low-volatility dividend payers and has outperformed with an average annual return of 13.5 per cent over the last 25 years through to the end of last month
Buying lottery tickets is a popular pastime for those who enjoy fleeting dreams of wealth. But nearly all of them wind up poorer, and only a tiny minority get exactly what they thought they wanted.
The Stable Dividend portfolio is composed of an equal-dollar amount of the 20 dividend-paying stocks with the lowest volatilities from the largest 300 common stocks on the Toronto Stock Exchange. It is refreshed, or rebalanced, monthly. To demonstrate the potential dangers of high-volatility stocks, I sorted the 300 largest stocks on the Toronto Stock Exchange by volatility and put them into 10 portfolios , with each portfolio containing 30 stocks. The first one holds the 30 stocks with the lowest prior volatilities, while the tenth portfolio contains the 30 stocks with the highest prior volatilities. The 10 portfolios were rebalanced at the end of each year and tracked over 25 years to the end of 2023.
The success of low-volatility approaches like the one embodied by the Stable Dividend portfolio is one reason why I tend to avoid highly volatile stocks. After all, low-volatility dividend payers have provided big returns while allowing investors to sleep better at night.
Portfolio Cent Stock Stocks End Return Period Volatility Toronto Stock Exchange S&P Bloomberg
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BC Ferries ship loses propellor, spills 800 litres of oil, incident 'stable'The Queen of New Westminster's lost a propeller on Sept. 3, causing multiple sailing cancellations
Read more »
Dollarama tops quarterly profit estimates on lower costs, stable demandDollarama’s net sales rose 7.4% to $1.56-billion compared to a year ago
Read more »
B.C. urged to create stable funding source for medical travelNew research shows that the average out-of-pocket costs for transplant patients ist $44,624.23.
Read more »
Supply management delivers what Canada needs: a stable supply of homegrown food, say ag repsThe Hill Times
Read more »
PEPE eyes breakout as adoption and whale activity risesPEPE price nears key resistance with stable adoption rates and rising whale activity driving bullish sentiment.
Read more »
B.C. needs more power. Is nuclear energy worth the cost?The technology promises large volumes of stable electricity, but analysts say it comes at a much higher cost than the alternative.
Read more »