TY - JOUR T1 - Beating the Market: <em>Dollar-Cost Averaging with the</em><br/><em>Profitable Dividend Yield Strategy</em> JF - The Journal of Wealth Management SP - 54 LP - 66 DO - 10.3905/jwm.2017.20.2.054 VL - 20 IS - 2 AU - Wai Mun Fong Y1 - 2017/07/31 UR - https://pm-research.com/content/20/2/54.abstract N2 - Extensive evidence shows that lump sum investing (LSI) beats dollar-cost averaging (DCA) in most stock markets. We show that DCA investors are not doomed to inferior returns. Motivated by the clean surplus accounting model of asset pricing, we consider a DCA strategy that invests in stocks with a high gross profits-to-asset ratio and high dividend yield. Using block bootstrap simulations of long-horizon (20-year) returns, we show that this profitable dividend yield strategy significantly outperforms LSI in the market index in many dimensions.TOPICS: Security analysis and valuation, simulations, performance measurement ER -