We’ll begin our discussion by pointing out that any strategy that focuses its screen on dividends is likely to result in a portfolio that pays higher dividends than a strategy that doesn’t. This is true of any strategy based on a single metric. For example, until recently, the small value fund of Dimensional Fund Advisors (DFSVX) used a single screen of price-to-book (P/B) ratio (it recently added a profitability screen).

On the other hand, Bridgeway’s small value fund (BOSVX) uses four different screens, of which P/B was just one. (Full disclosure: My firm Buckingham recommends Dimensional and Bridgeway in constructing client portfolios.)

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