NYSE International Dividend Dogs Lose In November

|
 |  Includes: BBVA, BCE, BMO, BP, CHL, CM, DEO, E, GSK, HSBC, NGG, NOK, ORAN, PUK, RDS.A, RDS.B, RY, SAN, SID, SLF, STO, TEF, TI, TLK, TOT, TRP, UL, UN, WBK, YPF
by: Fredrik Arnold

Any portfolio of stocks is only as strong as the grounds for its collection. Much like a building is planned and built to suit its location, so must a stock portfolio be built to suit the owner's purpose. Many investment strategists recommend dividend-paying stocks. Recent articles have investigated and compared projected dividend yields from eight indices in an effort to sort out an answer to which dividend stocks are good, better, best, bad or ugly.

Many well-paid financial wizards busy themselves attempting to gain followers and credibility for their chosen collections of equities. Some are:

  • Russell Investments, a subsidiary of Northwestern Mutual Life Insurance, publishes the Russell 1000 index.
  • Standard and Poors, a division of McGraw Hill, publishes several indices, including the S&P 500 and the S&P 100.
  • Dow Jones, a CME Group Company, aggregates the Dow Jones industrial average of 30 stocks commonly called the Dow.
  • Nasdaq, the nation's first electronic stock exchange, was once the National Association of Securities Dealers Automated Quotations.
  • NYSE the New York Securities Exchange with Euronext has five divisions specializing in financial transaction systems and information.
  • AMEX, the American Stock Exchange, is third largest in the U.S. and is now part of NYSE Euronext.
  • CBOT the Chicago Board of Trade is a contract market division of the CME Group.
  • Most investment houses, such as JPMorgan, Morgan Stanley, Merrill Lynch, Morningstar, Goldman Sachs, Edward Jones, Fidelity and Vanguard, collect lists of multi-purpose equities. Some publish their lists; others do not.

Instant Investment Wisdom

To determine the best of the best dividend stocks, many investors rely on a once per year trading system triggered by yield, called the "Dogs of the Index" strategy. This strategy gives the investor the tactical advantage of obtaining all the wisdom and knowledge of the well-paid wizards of investment and publishing for free, merely by choosing the highest-yielding stocks from an existing collection built by the experts.

Charts below reveal low yielding stocks whose prices increase (or whose dividends decrease) to be sold off once each year to sweep gains and reinvest the seed money into higher yielding stocks in the same index. Two key metrics determine the yields that rank the NYSE International 100 Index dividend dog stocks: stock price and annual dividend. Dividing the annual dividend by the price of the stock declares the percentage yield by which each dog stock is ranked. Thus the investor is able to follow, trade, and await the results from an investment in the lowest priced, highest yielding five or ten stocks in this index.

Any portfolio of stocks is only as strong as the grounds for its collection. Much like a building is planned and built to suit its location, so must a stock portfolio be built to suit the owner's purpose. Many investment strategists recommendd dividend paying stocks. Recent articles have investigated and compared projected dividend yields from eight indices in an effort to sort out an answer to which dividend stocks are good, better, best, bad or ugly.

Index Revelations for November

Picks below are as of 11/11/11 by Yahoo Finance data ranking the top dividend yielding stocks listed on the NYSE International Index. The NYSE states:

The NYSE International 100 Index tracks the largest 100 non-U.S. common stocks listed on the New York Stock Exchange. As of year-end 2004, the companies represented have a combined market capitalization (float-adjusted) of $4.3 trillion. Together they represent over one-quarter of the total market capitalization of all common stocks listed on the NYSE.


Click to enlarge.

Again in November, four of the top ten stocks paying the biggest dividends in this index are technology firms. YPF Sociedad Anonima (NYSE:YPF) last topped this list in August and edges out Telefonica SA (NYSE:TEF) by 0.53%. YPF is tops again with a 9.28% yield in November. Of these top thirty NYSE International dividend payers, seven are technology companies, three consumer goods, nine financial, no services, eight basic materials, no industrial, one health care, two utilities, and no conglomerates represent the sectors.

November Vertical Moves in NYSE International Index Dividend Payers

Over the first eleven months five different firms have exchanged places at the top of the list, TEF, YPF, NOK, STD, and SID. Color code shows: (Yellow) firms listed in first position at least once between January and October 2011; (Cyan Blue) firms listed in tenth position at least once between January and October 2011; (Magenta) firms listed in twentieth position at least once between January and October 2011; (Green) firms listed in thirtieth position at least once between January and October 2011. Duplicates are depicted in color for highest ranking attained.

Click to enlarge Click to enlarge.


Click to enlarge.


Click to enlarge.


Click to enlarge.

Notice that no NYSE International 100 stocks disappeared from the list in October or November. A notable gain in price with a corresponding drop in dividend yield was made by SID between October 20 and November 11.

November Dividend vs. Price Results for NYSE International Index Top Ten

Below is a graph of the relative strengths of the top ten NYSE International 100 Index stocks by yield, as of November 11, 2011. Using eleven months of historic projected annual dividend history from $1,000 invested in the ten highest yielding stocks each month and the total single share prices of those ten stocks creates the data points for each month shown in green for price and blue for dividends.

The November NYSE International 100 Index component update shows bear market divergence holding fairly steady with both dividends from $1,000 invested in the top ten and the aggregate total single share prices dropping slightly. Stay tuned.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Disclaimer: This article is for informational and educational purposes only and shall not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security.