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One particular investment strategy', a dividend yield strategy, has been in existence for
several years. This strategj^ consists of investing an equal dollar amount in each of the
ten stocks of a market index with the highest dividend yields. With yearly rebalancing,
the portfolio return In the United States over time has exceeded that of the Dow. In this
paper, we find that a similar dividend yield investment strategy in Britain was not
effective between March 1984 and February 1994, The portfolio returns e,xceeded the
market returns on both unadjusted and risk adjusted bases, in only four years. The
superior niultipie year Top Ten portfolio performances were primarily due to the
outstanding second year returns.
Keywords: dividend, yield, British, value, investment, strateg)'
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