RT Journal Article
SR Electronic
T1 Do Dow Stocks Offer a Value Premium?
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 95
OP 103
DO 10.3905/jwm.2009.12.3.095
VO 12
IS 3
A1 Jin-Gil Jeong
A1 Youngho Lee
A1 Sandip Mukherji
YR 2009
UL https://pm-research.com/content/12/3/95.abstract
AB This article investigates the performance of value and growth portfolios based on five different valuation ratios to determine whether Dow stocks offer a value premium, as suggested by the Dogs of the Dow strategy. The results show that the dividends value portfolio earned significant excess returns during May 1983–April 1995, while the earnings value portfolio significantly outperformed during May 1995–April 2007. Only the earnings value portfolio provided a significant annual excess return (3.72%) over the entire study period.TOPICS: Factor-based models, security analysis and valuation, performance measurement