A dividend screen which envisages that an investor annually selects for investment the ten large cap stocks in the major market index whose dividend is the highest fraction of their price. This version uses the historic/actual yield.
Proponents of this strategy argue that blue chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company; the stock price, in contrast, fluctuates through the business cycle. more »
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