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The effectiveness of investment strategies using high-dividend stocks.

Student: Sorokin Il`ya

Supervisor: Sergey M. Menshikov

Faculty: Faculty of Economic Sciences

Educational Programme: Bachelor

Year of Graduation: 2014

<p>The world economy experienced difficult times in the past decade: the U.S. mortgage crisis triggered the global financial crisis, the debt problems of some European countries led to the European debt crisis, finally, there were problems with the size of the state. U.S. debt had nearly led to a technical default. Despite this, the global economy is gradually overcoming crisis period.</p><p>As it can be seen from the graph, before the crisis, developing countries overtook developed ones &nbsp;in terms of growth, while after it developed countries reached the same level. Therefore, if we plan to invest in the Russian economy, which in this context is a classic emerging economy, we need to seek any special capabilities to outperform not only the market, but also other strategies.</p><p>&nbsp;</p><p>I encountered two problems when analyzing the literature:</p><p>1) Firstly, none of the articles provided definitive conclusions on the question of the real efficiency or sustainability of &ldquo;Dogs of the Dow&rdquo;. Most likely, no one has done a comprehensive analysis of it.</p><p>2) Secondly, almost no one tried to apply the strategy outside of the U.S. market.</p><p>Based on this, in my work I plan to:</p><p>1) Check the efficiency of the &ldquo;Dogs of the Dow&rdquo; pricing strategy in the U.S. market as soon as possible, and for a longer period.</p><p>2) Assess the efficiency of this strategy in the Russian market.</p><p>3) Compare the efficiency of the markets in developed and developing countries.</p>

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