Building A Low-Risk Dividend Strategy

Since September I have been investing in a strategy that I researched and documented in Building A Low-Risk Dividend Strategy. This strategy used a simple set of criteria to identify dividend stocks that were likely to be undervalued and showed backtested returns of 16% annually over the last 20 years together with a low annual turnover of stocks
I've been trading the strategy with a small investment since September 2017 and am now kicking myself that I didn't invest my normal stake in it. I reasoned that with the market expectations of three interest rate hikes over the next 15 months, dividend stocks as a whole would show below average gains for the greater part of 2018.
While the strategy's volatility did increase in the latter part of 2017, the strategy has returned 15.8% since I started trading it, with capital gains making up two-thirds of the gains and dividends the balance.
As usual, I have used the InvestorsEdge.net platform to track the strategy's performance. You can find more risk and position information for the live results here and can compare them to the original backtested results from our article last year here.
Results Since September 2017 You can see from the above graph that strategy has tracked and slightly exceeded its S&P 500 benchmark, recovering from the recent market correction in the first quarter within 2 months. When analyzing performance I always look at a strategy's drawdowns in addition to the top line returns... Read more