January Recap: Dividend Vs. Price Collision Of 8 Sectors Dogs

This monthly series gauges relative investment risk in eight stock sectors. To show risk the gap between annual projected dividends resulting from $10,000 invested as $1,000 each in the top ten highest yielding stocks in an index or sector is measured against total prices of one share of each of those ten stocks in that same index or sector. This is another attempt to respond to the question of which dividend stocks are good, better, best, bad or ugly. The effort also aims to heed Yale economics professor Robert Shiller's admonition: "People still place too much confidence in the markets and have too strong a belief that paying attention to the gyrations in their investments will someday make them rich, and so they do not make conservative preparations for possible bad outcomes." A once per year trading system triggered by yield, the Dogs of the Index strategy is the basis... Read more