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 1992 and we have added the list of ten stocks and their price with the dividend yield.
1992 Data Breakdown
For the second year in a row, the top ten stocks in the high yield category underperformed the Dow Jones Industrial Average AND the low yield category.
Average Return 1991-1992
The average return for the period from December 31, 1990 to December 31, 1992 highlights the strength of the low yield stocks. However, for the top ten high yield stocks, they could not outperform the Dow Jones Industrial Average.
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