In our continued pursuit to gather data that contradicts our view that low yield stocks outperform the high yield stocks (aka Dogs of the Dow) as presented in Michael O’Higgins’ book Beating the Dow, we have obtained the performance of the top ten, top five, top three and the 2nd, 3rd, and 4th stocks in the high and low yield groups then contrasted their performance against the Dow Jones Industrial Average for the same year.
In this case, the year under consideration is 1993 and we have added the list of ten stocks and their price with the dividend yield.
1993 Data Breakdown
This is the first year where High Yield stocks (Dogs of the Dow) exceeded the returns of the Low Yield stocks.
Average Return 1991-1993
The average return for the period from December 31, 1990 to December 31, 1993 continues to show the Low Yield stocks exceeding the index in each grouping. However, the High Yield stocks are gaining ground with the top ten stocks failing to prove their ability to beat the Index.
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