THE EVALUATION OF THE EFFECTIVENESS OF HIGH-DIVIDEND STRATEGIES IN VARIOUS MARKETS

The article assesses the effectiveness of investment strategies involving the use of shares with high dividend yield in the markets of Germany, France, Russia, South Africa and Brazil. The effectiveness of such strategies is analyzed on the basis of the existing papers and using the method of modifying such strategies developed by the author for obtaining more profit. The study period is 13 years: from 2006 to 2018. Modifications of highdividend strategies associated, firstly, with different control month, secondly, with different number of stocks in the portfolio, finally, with the deletion or doubling the weight of stock with the highest dividend yield. The conclusions are made about the different effectiveness of high-dividend strategies in the markets of developed and developing countries, which is related to the different level of effectiveness of these markets. In the markets of Germany and France most of the reviewed portfolios showed lower profitability than market, in Brazil and South Africa they were significantly more profitable than the market. In the Russian market high-dividend portfolios were successful during whole period of the study, because of the high profitability during last 3 years. The effectiveness of the reviewed portfolios in emerging markets is confirmed using the Sharpe ratio as the risk to return indicator. The hypotheses about the possibility of making a higher profit in the case of using modifications of the classical high-dividend strategies are confirmed. Nevertheless, various modifications have shown a multi-directional effect on the final profitability of strategies, which indicates the need for individual study of the parameters of a particular market before using high-dividend strategies.

shares, dividends, high-dividend strategies, investments, investment strategies, dividend shares, Dogs of the Dow strategy, DAX30 index, CAC40 index, BOVESPA index, TOP40 index, MOEX index, Sharpe ratio.

Sorokin I. A. The evaluation of the effectiveness of high-dividend strategies in various markets // Business. Education. Law. 2019. No. 1 (46). Pp. 335–344. DOI: 10.25683/VOLBI.2019.46.104.