- Benchmark performance review of its Dogs of the S&P 500 Portfolio.
- Explores how holding a diverse portfolio of blue chip dividend stocks can benefit investors in today’s markets.
- Year-to-Date Return of 32.02%.
- Year-to-Date Return of 32.02%
- Trailing 1 Year Return of 26.07%
- Annualized Lifetime Return of 14.29%
- Alpha of 4.52 (vs Benchmark*)
- Beta of 0.73 (vs Benchmark*)
- Average Dividend Yield of 4.29%
Ahead of the Pack
So far this year, Durig’s Dogs of the S&P 500 has had overwhelming success, outperforming its closest peers in year-to-date, trailing 1 year, and annualized lifetime return periods. Durig attributes this outstanding performance to lessened historical volatility as compared to the overall market.
While many investors are apprehensive about equity investments these days, Durig’s Dogs of the S&P 500 Portfolio actually contains far less historical volatility than the S&P 500 itself, with a beta of only 0.73 (vs. the S&P 500). In essence, this reduced correlation improves Durig’s Portfolio by helping to smoothen the sharp ups and downs that burden today’s equity markets, helping clients sleep peacefully at night.
We believe the portfolio’s lower, and far more preferable correlation to the S&P 500 / the market as a whole and the selection of high quality, high yielding blue chip companies are part of what have allowed it’s historic outperformance as compared to the volatile and erratic movements of equity markets.
Who wouldn’t want more income with less volatility?
Blue Chip Resiliency
Patrick Healy, founder and president of Caliber Financial Partners, had this to say in a recent article about blue chip dividend producers’ ability to mitigate downside risk in tough markets:
“Investors can take advantage of selloffs and potentially score some bargain buys when valuations are depressed. In that type of scenario, dividend producing stocks Procter & Gamble (PG) or Coca-Cola (KO) could be a good choice because they tend to be resilient and trade well even during periods of declining interest rates. Healy says holding these types of stocks, along with blue chip companies such as Johnson & Johnson (JNJ) or Walmart (WMT), which have sustainable cash flow and the ability to grow earnings over time, can offer a buffer against downside risk.”
The key is that these companies are blue chip because they have been effective and resilient in periods of market turmoil or changing interest rates with respect to their ability to generate stable and growing earnings, maintain the high dividends paid to shareholders, and solid execution of strategic business initiatives, etc.
Today’s financial markets can be difficult to navigate even for the sophisticated investor. As US Treasury yields continue to fall, many are looking elsewhere to achieve attractive returns. Durig’s Dogs of the S&P 500 has outperformed its closest peers, and was designed to produce the following benefits:
- Diversify and Grow Income
- Helps to offset fixed income investments
- Less Historical Volatility than the S&P 500
- Participate in US Blue Chip Equity Trends
- Capture higher yielding blue chip dividends of reputable companies
- Blue Chips help to provide relative income stability as evidenced by their stable earnings and health growth, as well as their dividends paid to shareholders
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For investors seeking to diversify and grow their income and capture higher yielding blue chip dividends, Durig’s professionally managed, Dogs of the S&P 500 Portfolio could be the solution, all at a very low cost.
For More Information
Durig Capital has several high yield portfolios available, click below to learn more.
TD Ameritrade Advisors
We have now started offering our highly successful Fixed Income 2 (FX2) Portfolio and our Dividend Aristocrats 40 Portfolio, and our Income Aristocrats Portfolio to clients of other Registered Investment Advisors through segregated accounts at TD Ameritrade Institutional. Please ask us to learn how this might work for you and your current advisor.
Disclaimer: Past performance is no indication of future success. Any performance shown is this publication is as of 11-5-19. * The Primary Benchmark used is S&P 500 TR Idx. The high yield strategies presented in this review by Durig Capital may not be suitable for all investors. This is not investment advice from Durig Capital, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision.