Friday, August 30, 2013

Vodafone Surge Pushes Net Payout Yield Model Higher

The recent speculation that Vodafone (VOD) will sell the 45% stake in Verizon Wireless it doesn't own sent the stock surging 8%. As a prime member of the Net Payout Yields model due to a large dividend and a smaller buyback, the gains in Vodafone helped push the model up to over 21% gains for the year. This compares favorably to the 14.9% gain in the S&P 500 and places the model on a path for three straight years of easily surpassing the index.

The below data comes from the model managed on Covestor. Annualized since inception (nearly 3 years now), the model has outperformed the market on average by 6.5% not including fees.



Naturally future performance can not be guaranteed, but the model is a consistent grower as it consistently shifts into high net payout yielding stocks.


Disclosure: Long VOD. Please see the disclaimer page for more details. 



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