The Evaluation of the Effectiveness of High-Dividend Strategies in Hight-Technology Companies

This study is aimed at assessing the effectiveness of high-dividend strategies using the example of high-tech companies. The valuation is based on the highly dividend “Dogs of the Dow” strategy. The work considers both the classic option, which involves selecting shares of high-tech companies for the investment portfolio only according to the criterion of dividend yield, and a modified approach. As a modified approach, the selection of shares for the portfolio is considered based on indicative profitability, as well as on the basis of filters based on financial indicators. Additionally, the investment portfolio was formed not only from 10 shares of high-tech companies, but also from 1 to 9. Testing was carried out over the time period from 2013 to 2023. The results of the study showed that the “Dogs of Dow” strategy is effective; high-dividend portfolios beat the benchmark, which was the NASDAQ-100 index, throughout the entire period under study. The most successful in terms of profitability was the modified approach, in which the selection was based on the indicative dividend yield. The worst strategy in this study is the high-dividend strategy, where the selection of stocks in the portfolio is based on filters based on financial indicators.