08-14-2014, 01:09 AM
Rob, I did a cursory look at that years ago and didn't find any meaningful research on the topic either.
Then I started looking at some of the companies that fit those categorizations and, in general, found that large caps were slower growers in EPS and yield although they were more dependable. Mid-caps generally have a lower yield to start with but their dividend growth was a little higher but also more volatile. As expected, small-cap yields were lower yet and didn't provide much greater growth in the dividend and were more volatile. The small-caps that provided a higher yield ended up being slow growers in that yield. All the above are generalizations I observed (didn't include REITs, BDCs and MLPs at the time) and you'll find many exceptions to the rule.
I gave up trying that angle and decided to pick companies that I liked the fundamentals and diversified across industry sectors and yield vs. growth. Market cap doesn't come into play for me.
Then I started looking at some of the companies that fit those categorizations and, in general, found that large caps were slower growers in EPS and yield although they were more dependable. Mid-caps generally have a lower yield to start with but their dividend growth was a little higher but also more volatile. As expected, small-cap yields were lower yet and didn't provide much greater growth in the dividend and were more volatile. The small-caps that provided a higher yield ended up being slow growers in that yield. All the above are generalizations I observed (didn't include REITs, BDCs and MLPs at the time) and you'll find many exceptions to the rule.
I gave up trying that angle and decided to pick companies that I liked the fundamentals and diversified across industry sectors and yield vs. growth. Market cap doesn't come into play for me.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan