February Industrial Goods Sector Dog Dividend Review

In December, this monthly report series began applying dog dividend methodology to each of eight major market sectors: Basic materials, consumer goods, financial, healthcare, industrial goods, services, technology, and utilities. The ninth sector, conglomerates, according to Yahoo Finance, contained just eight firms, five of which pay dividends. Thus we declined to apply dogs of the index metrics to such a limited universe, declaring: Such a task is comparable to a dog show judge trying to evaluate a Chihuahua based on St. Bernard conformation standards. Dogs of the Index Metrics Used to Select The Top Ten Sector Stocks Two key metrics determined the yields that ranked index or sector dog stocks: (1) stock price; (2) annual dividend. Dividing the annual dividend by the price of the stock declared the percentage yield by which each dog stock was ranked. Investors select portfolios of five or ten stocks in any one index or... Read more