19 High Yield Stocks that Historically Outperform

In early October I detailed 2 high yield investment strategies (part 1 and 2) that have had a history of outperformance. Below is the list of stocks meeting the two strategies criteria as of the close on November 6th. Obviously, past performance does not mean these strategies will continue to outperform in the future. However, a variety of momentum strategies (part 1) have been detailed extensively on Scott's Investments and the high yield momentum strategy is similar in nature to other successful momentum strategies.

The first screen looks for high yielding high momentum stocks. I screened the S&P 500 for stocks yielding greater then 4% and then ranked them by 6 month returns. There were 59 results and per article 1, the highest momentum, high yield stocks have historically been the best performing so I have listed the top 20% (based on 6 month returns) of results, or 12 stocks. I have also included the percent each stock is above the 200 day moving average for informational purposes:

Ticker	Company	Free Trend Analysis	Dividend Yield	Performance (Half Year)	200-Day SMA	Price
RRD	R.R. Donnelley & Sons Company	Here	4.96%	62.64%	56.30%	20.98
PLD	ProLogis	Here	5.18%	41.74%	30.86%	11.58
VTR	Ventas Inc.	Here	5.24%	39.60%	27.39%	39.13
MRK	Merck & Co. Inc.	Here	4.66%	37.05%	16.79%	32.59
LEG	Leggett & Platt, Incorporated	Here	5.35%	32.52%	26.41%	19.44
HCP	HCP, Inc.	Here	6.63%	32.08%	21.15%	27.75
EQR	Equity Residential	Here	4.68%	30.54%	22.54%	28.85
HCN	Health Care REIT Inc.	Here	6.45%	29.82%	17.89%	42.14
DTE	DTE Energy Co.	Here	5.53%	27.29%	22.12%	38.34
TEG	Integrys Energy Group, Inc.	Here	7.61%	27.13%	15.73%	35.75
POM	Pepco Holdings, Inc.	Here	7.08%	27.06%	12.71%	15.26
SE	Spectra Energy Corp.	Here	5.17%	26.74%	18.48%	19.34

The second screen looks for stocks in the S&P 500 yielding greater than 3.5%, with a payout ratio less then 50%. An explanation of the reasons behind the strategy is here. I have included some additional momentum columns for information purposes:

Ticker	Company	Free Trend Analysis	Dividend Yield	Payout Ratio	Performance (Half Year)	200-Day SMA	Price
EXC	Exelon Corp.	Here	4.50%	49.65%	-5.14%	-3.70%	46.7
SUN	Sunoco Inc.	Here	4.25%	19.40%	-5.11%	-1.13%	28.21
NU	Northeast Utilities	Here	4.11%	45.62%	11.43%	4.55%	23.1
FPL	FPL Group Inc.	Here	3.80%	45.57%	-11.43%	-5.89%	49.76
CAG	ConAgra Foods, Inc.	Here	3.74%	48.33%	23.84%	15.95%	21.4
EIX	Edison International	Here	3.74%	45.80%	13.32%	9.15%	33.19
CMS	CMS Energy Corp.	Here	3.70%	42.74%	15.64%	12.27%	13.53

Disclosures: Author has no positions