06-01-2015, 02:08 PM
I back-tested the formula and achieved alpha, however dividend growth was pitiful.
Looking at the stats provided by Ben, it reminds me that association is not causation. Just because high p/e ratios are associated with high payouts, doesn't mean high payouts cause high p/e ratios.
On a side note... I'm really glad I found this forum. Thanks for your replies!
Looking at the stats provided by Ben, it reminds me that association is not causation. Just because high p/e ratios are associated with high payouts, doesn't mean high payouts cause high p/e ratios.
On a side note... I'm really glad I found this forum. Thanks for your replies!