Stocks with Large Dividends Outperform
Here's an interesting article that I just came across which compares the performance of the highest yielding DOW stocks to the lowest yielding ones. The top 15 stocks in terms of yield were down 4.2% YTD at the point that the article was written while the lowest yielding 15 were down 14%.
I don't even like a number of the top yielders as businesses. It gos to show that dividends seem to provide somewhat of a cushion during market turmoil...except for MLPs for some reason. They must be more thinly traded because they always seem to get hammered on big negative days. I took advantage of what I believe to be an overreaction to add a number of MLPs to my CAPS portfolio.
The vast majority of my real-life holdings pay significant dividends. I need to have a really good catalyst or reason to buy a non-dividend paying stock in real-life (I do have a few). Those high yields, combined with my significant exposure to bonds has kept me from being hammered nearly as badly as the overall market has over the past couple of weeks in real-life. I only wish that I could say the same about my score in CAPS ;). My reluctance to short things has definitely hurt me here.
A List of High Dividend Dow Stocks