Date of Award

1-1-2000

Thesis Type

Masters

Document Type

Thesis

Divisions

Faculty of Business and Economics

Department

-

Institution

Universiti Malaya

Abstract

Many theories, techniques and strategies have been developed over the years on how to outperform the stock market. The objective of this research is to apply the "Dividend-Yield" strategy on the Kuala Lumpur Stock Exchange ("KLSE") to ascertain whether using such a strategy would provide superior investment return. Research findings using this strategy on the New York Stock Exchange ("NYSE") have shown favourable results. The data used in this research were sourced primarily from the KLSE, covering a period of 10 years from 1988 to 1997. This research is based on the premise that the investment universe comprises the component stocks of the Kuala Lumpur Composite Index ("KLCI"). The analysis began with the ranking of the KLCI stocks in terms of their dividend yields for each year. The second stage involved the selection of the 10 highest dividend yield stocks and invests in them (in equal dollar amount) for the next 1 year. The third stage involved the yearly readjustment of the 10-stock portfolio based on new information concerning the dividend yields. The investment returns using the Dividend-Yield Strategy over a period of time will be evaluated against the market investment benchmark. which are the investment returns to the KLCI. Finally, we examine the practicality and limitations of such strategy in the Malaysian equity investment environment.

Initial

snms

Additional Information

Dissertation (M.A) -- Faculty of Business and Economics, Universiti Malaya, 2000

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