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and buying an equal position in all 10 at the beginning of each year. At the end of each year, the investor finds the 10 highest dividend yield stocks again, and reallocates their positions so as to have an equal position in all 10 Dogs of the Dow. The Dogs of the Dow made a compounded annual return
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Several stock indexes are based on high-yield stocks, such as Dow Jones U.S. Select
Dividend Index and FTSE High Dividend Yield Index. S&P High Yield Dividend Aristocrats Index contains companies that have raised their dividends. Equity securities of companies in the utilities industry typically
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note. The classification of a high-yield stock is relative to the criteria of any given analyst. Some analysts may consider a 2% dividend yield to be high, whilst others may consider 2% to be low. There is no set standard for judging whether a dividend yield is high or low. Many analysts do however
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The Dow 5 strategy is a variation of the Dogs of the Dow strategy. This strategy dictates the investor compile a list of the 10 highest dividend yielding stocks from the Dow Jones
Industrial Average, and buy the 5 lowest priced of those 10 stocks at the beginning of each year. At the end of every
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year, the investor remakes the list, and reallocates their positions so as to have an equal position in all 5 stocks. This strategy has made an annual return of 19.4% from 1975 to 1999. This would make $ 10,000 turn into $ 840,000 in 25 years.
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strategy is a well-known simple strategy which incorporates high dividend yields. The strategy dictates that the investor compile a list of the 10 highest dividend yielding stocks from the
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Dividend aristocrats are known for decades of consecutive years of dividend increases, this does not necessarily mean they have high dividend yields. In fact, the average yield for the
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is between 1.8% and 2.4%. Nonetheless, picking stocks from the top yielding dividend aristocrats is a method for boosting portfolio yields, with the average
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231:. From the time of its discovery onward, it has been famously unreliable in its returns, and even its original creators have since disowned it.
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use indicators such as the previously mentioned comparison between the stock's dividend yield and the 10-Year US Treasury Note.
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of 18% from 1975 to 1999 outperforming the market by 3%. This would make $ 10,000 turn into $ 625,000 in 25 years.
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A high dividend yield indicates undervaluation of the stock because the stock's dividend is high relative to the
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offering investors about a 4% return, with the safety of decades of dividend increases backing up each stock.
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because many investors consider dividend paying stocks to be less risky.
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is higher than the yield of any benchmark average such as the ten-year
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strategy was a strategy popularized on the investing website
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