“The quality and dividend strategy outperformed the S&P 500 by 5.42% per year, with an annualized total return of 11.04% versus 5.62% during the past 20 years,” said S&P Dow Jones. “The quality and dividend strategy held up relatively well in all market environments, with an average monthly excess return of 0.28%, which was the highest among all the strategies.”
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Dividend payers have outperformed non payers and the broader market, producing a higher Sharpe ratio or improved risk-adjusted returns, with a lower standard deviation and greater performance relative to their benchmarks. Adding quality or other factors to dividend strategies can help those strategies recover more rapidly following bear markets, underscoring the case for NOBL’s quality traits.
“During the 2008-2009 financial crisis, when all of the yield strategies experienced losses and drawdowns, the data showed that the quality and dividend combination had the smallest drawdown and quickest rebound,” according to S&P Dow Jones.
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