Consistent Dividend Growth Investment Strategies

Abstract

This article investigates whether firms in the United Kingdom that have a long, uninterrupted history of dividend growth outperform the broader equity market. It is observed that firms with more than 10 years of consistent growth have returned considerably more than the equity market as a whole, with the additional benefits of lower volatility and smaller drawdowns. A size effect exists among these firms, with lower market-capitalization firms demonstrating improved risk-adjusted returns.

TOPICS: Security analysis and valuation, developed, factor-based models, performance measurement