The High Yield Ten
The High Yield 10 approach selects the 10 Dow stocks with the
highest yield and holds them for one year. If the lowest priced stock on the
DOW is also the highest yielding stock, it is eliminated and the stock
ranked #11 is added. The list below has already been altered to include that
exception, if applicable. At the end of the year, it sells any stocks not
still on the top 10 list, and replaces them with the new highest yielding
stocks.
Using The High Yield 10 approach, $10,000 invested in 1970 would be worth
over $640,000 by January 1st 1997. This results in an annual return of 17.3%.
Over the past 26 years, the approach has lost value only twice, the worst of
which was a 10% loss during the 1990 recession.
The following are the 10 highest dividend yielding stocks of the Dow 30
stocks.
Purchase equal dollar amounts of each of these 10 stocks. The table below
shows you how many shares of each to buy for every $10,000 you invest. Note you
are buying equal dollar amounts NOT equal share amounts.
Hold these shares for 12 months
Update your portfolio in a similar manner 12 months later.
Overview
