"High Dividend Yielding Large Cap Stocks Usually Out Perform the S&P 500"

stock dividend benefits - man offering drink

Don't envy my great retirement -- Join the fun!

Click to discover my secret to ever-growing income from investments for life -- whether the stock market goes up or down

In his book What Works on Wall Street, James P. O'Shaughnessy tested many value and growth strategies to determine what actually worked on Wall Street.

He used information on stock prices from Standard & Poor's Compustat Active and Research database from 1950 through 1994.

He tested both the largest possible universe of stocks, which he called All Stocks, and the top 16% market cap, which corresponds basically to the S&P 500, which he calls Large Stocks.

He Studied the 50 Highest Dividend Yielding Stocks

One thing he did do for his study of the 50 highest dividend yielding stocks was exclude utilities, because they would have dominated the study with their stock dividends

I wish he'd done a separate study on them, but his findings still support my conclusion.

If you'd bought the 50 highest dividend yielding, large cap stocks (excluding utility stocks) in 1950, rebalanced every year and reinvested all shareholders dividends, you would have done about twice as well as his Large Stock universe as a whole, which does roughly correspond to the S&P 500. Plus, you would have done so without any risk.

Now, he was measuring Total Return, not just income, but his study shows that large cap stocks that pay out cash dividends do better on the average than large cap stocks that don't.

Now download The Death of Capital Gains Investing, your first step toward experiencing for yourself the joy of securing your retirement through income investing!

It's easy. Just enter your first name and email address into the form below.

(NOTE: After you click the button, you'll be taken to a thank you page with the link to download your free report.)

Copyright 2007-2017 by Gold Egg Investing LLC. All rights reserved.

Income Investing Site Full Disclaimer and Website Agreement