BUSI 4502 Lecture Notes - Lecture 9: Toronto Stock Exchange, Dividend Yield, Sharpe Ratio
30 Aug 2018
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Document Summary
Dividend yield strategy, being one of the classes for value investment strategies, has been a popular investment strategy for unit investment trusts and has gain significant investment return. Previous studies have been investigating the effectiveness of dividend yield strategies mainly in the u. s. and mix evidence was found in canada. Different factors like structural differences, january and size effect can possibly explain the differences in previous findings. The dow strategy is being used in british. Hence, the main purpose is to investigate whether the dow dividend yield strategy is effective in the stock market and the strategy is concluded too be not effective. The sample size are the 10 highest dividend yielding stocks in toronto 35 index against the performance of the toronto 35 and the toronto stock exchange (tse) 300 composite index. The sample period is from 1987 to 1997. dividend yields on all of the toronto 35 companies from sample period is collected.
