Investing in High Dividend Financial Stocks

In a previous study, we showed that the average return of high dividend yielding stocks was 13.04% between 1927 and 2009. Dividend stocks beat the overall market by an average of 1.36% per year in that period. We like high dividend stocks and consider them as alternatives to 10-year Treasury bonds. High dividend stocks deliver higher current yields and usually increase dividend payments over the next 5-10 years. Like Jim Rogers and Ray Dalio, we are concerned about the Fed’s inflationary monetary policy and want to protect ourselves against inflation. One of the ways of doing this without assuming significant risks is investing in high dividend stocks. In order to demonstrate the effectiveness of this strategy we compiled a list of top 30 U.S. Financial Stocks (the sector classifications are sourced from Finviz) by market cap and ranked them based on their 12-month dividend yields. The top and bottom halves... Read more