Below is a chart of the performance of the Dogs of the TSX 60 from December 31, 2018 to December 31, 2019.
On average, as with the Dogs of the Dow, low yield stocks continues to dominate the high yield (Dogs of the TSX 60). It isn’t supposed to be this way according to the popular literature on this topic.
Our commentary from the January 2019 Dogs of the TSX 60 watch list had the following to say:
“Unlike the Dogs of the Dow, The Dogs of the TSX 60 have the best performers in the ‘high yield’, ‘low p/b’, and ‘low p/e’. Our preference is for stocks within the low yield grouping.”
Our painful adherence to conservatism and safety has seen our pick of low yield stocks doing “alright” compared to the Toronto Stock Exchange. We introduced the 1,2,3 and 2,3,4 as an alternative to the conventional top ten stocks, as we believe better performance within the low yield stocks would come from the top 2nd, 3rd, and 4th stocks.
While we have observed that low p/e, low p/b, and high yield Canadian stocks performed better in the past, only the low p/b stocks crushed it, especially the top 1,2,3 stock in that grouping with a dumbfounding gain of +79.37%.