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 1994 and we have added the list of ten stocks and their price with the dividend yield.
1994 Data Breakdown
After reviewing the data and adjusting for splits, the Dogs of the Dow (High Yield stocks) again underperformed the Low Yield stocks.
Average Return 1991-1994
On average, from 1991 to 1994, the Low Yield stocks continue to outpace the Index and the High Yield (Dogs of the Dow) stocks at more than double the rate.
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