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 1991 and we have added the list of ten stocks and their price with the dividend yield.
1991 Data Breakdown
The data should be considered amazing because the exceptional yield that is offered by the high yield stocks (Dogs of the Dow) an investor generally foregoes nearly double the return. Also notice that the high yield stocks had 4 of the ten companies on their list that failed (bankruptcy, forced liquidation) while only one company in ten on the low yield list has failed (so far).
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