Quantitative investing: enhanced yield system update

Time to update quant system #3 in my series. See my previous two posts for the first two system updates (here and here). Today I’ll update the enhanced dividend yield system which I originally posted on almost 2 years ago. Let’s dive right in. The enhanced dividend yield strategy originally appeared in What Works On Wall Street. In its original…

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Quant investing: building a better index

Today I wanted to take a look at how you can use quant investing to build a better stock market index. For my previous posts on quant investing see this series of posts. In a way stock market indices are quantitative models. And due to history and other factors they are not very well constructed. For example, the Dow Jones…

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An IVY Buy & Hold Portfolio for the Skeptical & Emotional Investor

One of the keys to successful long term investing is finding a portfolio strategy that works for you, that lets you be at peace and sleep at night. Historical and theoretical returns don’t mean a thing if you have little chance of sticking with a certain strategy. And herein lies the biggest problem with the commonly recommended buy and hold…

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Quantitative Investing – Enhanced Dividend Yield

Today I want to cover the Enhanced Dividend Yield quant strategy from What Works On Wall Street. ┬áThis strategy is a bit more complicated to implement than the others I’ve covered (see previous posts), especially for individual investors. Its performance results are much better than other dividend based strategies. While not as good as the strategies I’ve presented previously it…

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Beating the market to maximize retirement income – part II

A while back I wrote about some historical analysis I had done that showed several ways that an investor could achieve market beating returns and thus maximize retirement income. It has been known for a long time that several ‘factors’ or characteristics of stocks generate market beating returns. The two classic factors are value and size. Value stocks outperform the…

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Do you know why you own bonds?

Do you know why you own bonds in your portfolio? There are many reasons to own bonds but one of the biggest reasons historically is no longer a good one for many investors. Bonds are often held in portfolios to provide a safe and steady source of income, in particular for retired investors. But the long bull market in bonds…

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Revisiting a recipe for a happy retirement

Time out in the boonies, in our case the wonderful eastern Sierras, almost forces you into a reflective mood. Yesterday was one of those days where the amazing beauty of a spectacular hike (see my wife’s post and pics here) got me thinking about what is needed for a happy retirement. Well, I should say rethinking because early on in…

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Rise of the nerds – tech stock dividends

Technology stocks are the largest dividend payers in the S&P500. Really? Yes. With the significant raise in Cisco’s (CSCO) dividend last week, the technology sector became the largest paying dividend sector, on a percentage basis, of all the S&P500 industry sectors (see this article). Apple’s (AAPL) initiation of a dividend earlier this year didn’t hurt either. Lets dig down a…

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Searching for dividends: individual dividend stocks

In my last post I covered the easiest and most obvious way to get exposure to dividend stocks, by investing in dividend ETFs. While dividend ETFs give you one of the biggest benefits of dividend investing, higher returns, they fail to deliver on other key benefits of dividend investing; lower volatility, lower drawdowns, and more consistent dividends. By far the…

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