This article reports results for the NYSE International 100 Index as of June 1 based on "Dogs of the Index" a once per year trading system based on yield used to determine the best of these dividend stocks.
Dogs of the Index Metrics
Two key numbers determined the yields that ranked the stocks in each index: (1) stock price; (2) annual dividend. Dividing the annual dividend by the price of the stock declared the percentage yield by which each dog stock was ranked.
Historically dividend dog investors utilized this ranking system to select portfolios of five or ten stocks in any one index, sector, or survey to trade. They awaited the results from their investments in the lowest priced, highest yielding stocks and prayed that the price of every stock they now owned climbed higher (having locked in a high yield percentage at purchase).
This Dogs of the Index strategy, popularized by Michael B. O'Higginsin the book "Beating The Dow" (HarperCollins, 1991), revealed how low yielding stocks whose prices increase (and whose dividend yields therefore decrease) could be sold off once each year to sweep gains and reinvest seed money into higher yielding stocks in the same index.
Investor Empowerment from the NYSE International 100
Listed below are the top thirty NYSE International100 stocks by yield as of June 1 per Yahoo Finance data.
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."
As of June 1, three of the top ten stocks that showed the biggest dividend yields in this index were technology firms. Top dog Banco Santander S.A. (STD) was one of two financial companies. Three basic material firms were in the top ten along with one healthcare firm and one utility.
Of the top thirty NYSE International dividend payers, six technology companies, one consumer goods, nine financial, one service, eight basic materials, no industrial, four healthcare, one utility, and no conglomerates represented the sectors.
Up and Down Moves for NYSE International 100 Index Stocks
Since February three different firms exchanged places earning the yellow tint awarded the dog at the top of the list; YPF Sociedad (NYSE:YPF); Telefonica, S.A. (NYSE:TEF); Banco Santander S.A. which on June 14 will change its ticker symbol to (NYSE:SAN).
Color code shows: (Yellow) firms listed in first position at least once between February and June 2012; (Cyan Blue) firms listed in tenth position at least once between February and June 2012; (Magenta) firms listed in twentieth position at least once between February and June 2012; (Green) firms listed in thirtieth position at least once between February and June 2012. Duplicates (if any) are depicted in color for highest ranking attained.
Bullish upward price moves since April 17 were made by not one of the top ten NYSE International 100 dogs. However, top dog Banco Santander S.A. managed to stay even at a $6.55 share price.
Bearish downward price moves for the same period hit the rest of the dogs of the NYSE International 100: Former top dog YPF Sociedad Anonima dropped off the list due to suspension of its dividends; France Telecom (FTE) experienced a 7.76% price hang up; Telefonica, S.A. shares dropped 26.27%; Astrazeneca PLC (NYSE:AZN) price sagged 11.46%; Banco Bilbao Vizcaya Argentaria S.A. (NYSE:BBVA) dropped off the list due to suspension of its dividends; Westpac Banking Corp. (NYSE:WBK) price folded 15.4%; ENI S.p.A. (NYSE:E) dug a 36.22% price trench; National Grid PLC (NYSE:NGG) disconnected 3.02% in price and had it's estimated dividend upgraded 19.67% by Yahoo to propel itself on to the top ten; VimpelCom Ltd. (VIP) price dropped 3.02%; Companhia Siderurgica (NYSE:SID) share price melted 32.09%; Vale S.A. (NYSE:VALE) price dropped 22.29% since April to join the top ten.
Dividend vs. Price Results for the NYSE International 100 Index
Relative strengths of the top ten NYSE International 100 Index stocks by yield was graphed as of June 1, 2012. Projected annual dividend history from $1000 invested in the ten highest yielding stocks each month and the total single share prices of those ten stocks created the data points for each of the past five months shown in green for price and blue for dividends.
Conclusion: A Bull Roared in May
Despite the massive drop in top ten NYSE International 100 Index top ten dogs individual share prices, the new assembled May team showed a 16.2% bullish drop in projected dividends from $1000 invested in each along with a .886% rise in aggregate total single share price since April 17.
Between February and May however the bear track was evident as dividends for this group increased 10.85% while aggregate single share price dropped 15.54%.
Will the NYSE International 100 Index price gains return this summer or will bears hold sway until this Euro-Asia Zone index finds a bottom? Stay tuned.
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. Prices and returns on equities in this article are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.