SQM - The 4 Factor Dividend Growth Strategy - Minor Turbulence In April

2024-05-04 05:41:49 ET

Summary

• The 4-factor dividend growth portfolio is a strategy that leverages the stock selection process of Schwab U.S. Dividend Equity ETF with a few minor twists.
• The portfolio fell 5.96% in April, trailing the S&P 500 by 1.88%.
• Since its inception, the portfolio has generated 3.03% of alpha over the S&P 500 and 17.58% of alpha over SCHD on an annualized basis.

4-Factor Dividend Growth Portfolio

The 4-factor dividend growth portfolio was launched on November 1st, 2022. You can read about the strategy, stock selection process, and portfolio construction in this 4-Factor Dividend Growth Portfolio article . In a nutshell, the strategy leverages the stock selection process of Schwab U.S. Dividend Equity ETF ( SCHD ), or rather its underlying index, the Dow Jones US Dividend 100 Index ( DJUSDIV ), with a few minor modifications.

The first major difference is the starting universe of stocks, I chose to create my own investable universe focused on high-quality companies that have a history of above-average dividend growth....

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