In September 2019, Morningstar.com published their DividendInvestor which contains their Income Bellwether Watchlist. Below is the performance of the stocks based on the top highest and lowest dividend yield from August 9, 2019 to August 7, 2020.
As the data continues to demonstrate, low yield generally outperforms high yield. This has been resoundingly shown in our Dogs of the Dow in the period from 1996 to 2019.
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Of the stocks that beat the performance of the S&P 500 gain at +14.82%, 74% had dividend yields below that average yield of the entire watchlist.
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The entire list of stocks gained +1.72%.
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The conversion/merger of United Technologies marginally impacted return data.
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Of note is the change in the performance by selecting the 2nd, 3rd, 4th stocks versus the top 3.
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No group beat the S&P 500 which is severely affected by lopsided market weighting.
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Top 10 low yield stocks beat the Dow Jones Industrial Average.
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