Below is the performance review of the top five stocks based on price-to-book, price-to-earnings and dividend yield ratios from our September 21, 2018 U.S. Dividend Watch List.
In the period from September 21, 2018 to September 20, 2019 (intraday), the Dow Jones Industrial Average increased +1%. The best performing group was the low payout ratio stocks with a gain of +8.85%. The worst performing group was the low p/e stocks was a loss of –14.09%.
Worth noting is the performance of the low yield stocks which gained +7.17% while the counterpart high yield stocks lost –6.76%. This continues to bolster our position that low yield stocks will routinely outperform the high yield stocks.
Also of interest is the fact that high p/e stock beat low p/e stocks, high p/b stocks beat low p/b stocks and low payout stocks beat high payout stocks.