As we noted in our post yesterday, Low Quality Equities Outperforming High Quality Equities, the lower quality companies in the S&P 500 Index are outperforming the higher quality ones. One characteristic of lower quality stocks is many of them do not pay a dividend. True to form, through the end of the third quarter, the non dividend paying stocks in the S&P 500 Index are outperforming the payers by a wide margin. The return comparison is detailed in the below table.
|From The Blog of HORAN Capital Advisors|
Source: S&P Dow Jones Indices