Dividend-Oriented Strategies and Value Investing
Top Papers on Dividend Yield and Value Investing
Dividend income accounts for a significant portion of long-term equity returns. The list below includes two S&P Dow Jones papers on this topic - one examining the performance of companies that have consistently increased dividends, and another that combines a dividend approach with a measure of free cash flow, in order to screen out companies that may have high dividends for the wrong reasons.
The first section of papers discusses dividend-oriented strategies, specifically centered around the selection of companies with high dividend yields. The second section looks at value investing from multiple angles. It begins with a rebuttal of value's critics, then examines the recent underperformance of value vs. growth, including the question of whether value investing will come (or is already coming) back into favor.

DIVIDEND-ORIENTED EQUITY STRATEGIES
A Fundamental Look at S&P 500® Dividend Aristocrats® (S&P Dow Jones, 2019)
Companies that have increased their dividends for at least 25 years in a row, such as those contained within this index, may exhibit desirable risk-return characteristics in addition to downside protection.
Building Efficient Income Portfolios (The Journal of Portfolio Management, 2015)
This paper explores the concept of efficient income investing by contrasting a notional income investor with a total return investor and modifying the standard total return portfolio optimization problem.
An analysis of dividend-oriented equity strategies (Vanguard, 2017)
This Vanguard paper examines high-dividend-yielding and dividend growth strategies, exploring their similarities and differences, as well as implications for their use in portfolio construction relative to both high-quality fixed income and equities.
Incorporating Free Cash Flow Yield in Dividend Analysis (S&P Dow Jones Indices, 2017)
Recent studies show that dividend reinvestment could account for around half of S&P 500 total returns. The authors attempt to improve upon a high dividend yield approach by combining it with a high free cash flow yield.
Harvesting Dividend Yield in China (Axioma blog, Jan 2019)
Axioma discusses the ability to harvest the dividend yield factor in Chinese equities by designing and examining two hypothetical strategies.
Resist the Siren Call of High Dividend Yields (Factor Research, 2017)
Due to the unimpressive long-term performance of the dividend yield factor, the authors recommend focusing on other factors with more consistent returns.
VALUE INVESTING AND THE VALUE FACTOR
Fact, Fiction, and Value Investing (AQR, 2015)
AQR Capital Management aims to bring clarity to the concept of value investing by rebutting several of its common objections, though whether the value premium exists due to behavioral or risk-based explanations remains somewhat dubious.
Value Factor: Comparison of Valuation Metrics (FactorResearch, 2018)
This Factor Research article references issues with the price-to-book ratio, as well as looking at the performance of value investing screens in the 21st century.
Where's the value in value investing? (Schroders, Dec 2018)
Due to current valuations of the value style versus its growth counterpart, investors may need to re-evaluate their allocations to value stocks and value-oriented strategies.
Monthly Global Factor Report (Lazard AM, Jan 2019)
This monthly update from Lazard covers factor returns - see how the value factor and others have held up recently in the face of equity market volatility.
Going Out of Style? Value vs. Growth (AB blog, Dec 2018)
For compliance reasons, this paper is only accessible in North America and South America
Instead of asking whether growth or value equities allocations are likely to outperform, investors ought to be paying attention to the reasons why they are performing differently.
After a Lost Decade, Will Value Get its Groove back in 2019? (Alpha Architect blog, Dec 2018)
Is value dead, or due for a rebound in 2019? Due to poor returns in recent years, this has become a popular topic of conversation. Value-oriented mutual funds and ETFs currently hold around USD 2 trillion in assets.
Deep Value (AQR Capital Management, 2017)
Deep value' episodes represent occasions when the valuation spread of cheap and expensive securities is historically wide. The authors examining deep value across multiple asset classes, providing new evidence about the value premium.