Active portfolio management based on dividend yield and application at ISE

Portfolio selection has a huge importance on investment decides. Nowadays, portfolio management is a indispensable component of investment process. Investing in only one security in the capital market embodies a risk in many respects. Hence, investors would like to construct a portfolio and spread this risk by investing in different shares.Investors consider dividend yield of firms as well in addition to lots of criterions while constructing portfolio. In this context, invsetors add shares having high dividend yield to their portfolios.The object of this study is to express that more returns compared to market index would be obtained by buying shares which payed high dividend per share in previous periods. In this context, portfolios have been constructed by calculating average monthly dividend yields of shares which are traded at ISE and revised as of three-month periods.