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The High Dividend Yield Return Advantage:

edited December 2013 in Off-Topic
From Tweedy Browne Company, LLC An Examination of Empirical Data Associating Investment in High Dividend Yield Securities with Attractive Returns Over Long Measurement Periods.

http://www.tweedy.com/resources/whdyf/TheHighDivAdvantageStudyFUNDwebcopy.pdf

Comments

  • beebee
    edited December 2013
    A high Yield bond fund I own, USHYX, has provided a pretty good risk / return profile compared to equity indexes S&P 500 and the Russel 2000:
    image
  • edited December 2013
    Thanks bee, junk bonds are the most underappreciated asset class on the planet. There's never much drama with them (volatility) as they trend so pure and persistently, be it up or down. Vanguard's junk bond fund, although a laggard I would never recommend, is one of the oldest. Since its inception 35 years ago it has had a mere 4 down years with two of those being under 2%. I guess "junk" scares most investors away from these wealth creating funds.
  • For what it's worth, Vanguard High Yield Fund (VWEHX) has reopened, after being closed for a year or more.
  • Reply to @bee: Did you own this fund since 99? If not that chart does not apply to you!
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