Capital Markets: Observations & Insights

The Search for Yield ​ Performance

• In 1Q19, dividend yield outperformed as interest rates declined while the secularly challenged low price-to-book stocks continued to lag

1Q19 Excess Return (%)

2018 Excess Return (%)

2.2 2.0

1.8 1.6

1.4 1.1

0.9 0.6 0.4 0.1

-0.3

-1.0 -1.2 -1.4 -1.5 -1.5

-1.0 -1.3

-2.3

-2.1

-2.6

-5.8

Market Cap

Book / Price

EPS Growth

Debt / Equity

Market Cap

Book / Price

Price Volatility

EPS Growth

Dividend Yield

Debt / Equity

Trading Activity

Earnings / Price

Revenue / Price

Price Volatility

Dividend Yield

Relative Strength

Trading Activity

Earnings / Price

Revenue / Price

Relative Strength

Earnings Variability

Earnings Variability

Source: FactSet as of 3/31/19 using Northfield defined quantitative factors for the Northfield broad U.S. market database.

Page 14