Dear capital markets enthusiasts, Our monthly newsletter is here to help you to achieve your desired investment goals. Take a look at the market drivers and build your stock portfolio/index/ETF based on proven investment indicators and theories using the Analytical Platform’s automation software.
MARKET DRIVERS
Today, we look at which investment indicators have performed best in the early months of the turbulent year 2025. In our app, you can find reliable long-term profitable indicators (factors) with good T-Statistic and P-Value.
TOP GAINERS OF THE YEAR 2025 – S&P 100
In the early months of 2025, the Dividend Yield has emerged as an unexpected star in the investment landscape. Stocks with the highest dividend yields have gained significant traction, outperforming the S&P 500 by a notable margin of 14.73% year-to-date.
DIVIDEND YIELD
Dividend Yield is a financial ratio that indicates the amount of dividends that a company pays out to its shareholders relative to its market value. It’s expressed as a percentage and indicates the income an investor is getting for each dollar invested. It is a vital indicator for value investors; in other words, it belongs to value investment indicators.
In the long term, it is a statistically confident declining indicator, i.e., the stocks with the highest indicator value increase in price the slowest (even when dividends paid are included in their price). This is illustrated in the long-term tests presented later in the article.
- Signal strength (based on T-test): 1.87 (×)
- Statistical confidence (based on P-value): 96.90 % (✓)
- Signal direction: Descending (
)
More statistics can be found in our article, Investment Indicators Performance in 2025.
IS PRIORITIZING HIGH DIVIDEND YIELD STOCKS A VIABLE LONG-TERM STRATEGY?
At first glance, the performance of high-yield dividend stocks might suggest a lucrative opportunity. In the initial two months of the year, these stocks left both their low-yield counterparts and the broader market in the dust. Yet, a deeper analysis reveals a more nuanced picture.
Find out more in our article, The Dividend Dilemma.
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