Based on the popular US strategy, ‘The Dogs of the Dow’, this strategy invests in ten high dividend-yielding stocks contained within the ASX 50 index. It is adjusted on an ‘as-needed’ basis, based on a monthly check, to ensure we continue to hold the optimal portfolio.
Latest Update – 03 February 2020
As it now the first trading day of the month, we have checked the Blue-Chip portfolio for the need for a rebalance. After taking into account of the dividend yield ceiling, none of the stocks have fallen below 15th rank and therefore there is no need to rebalance the portfolio.
We have some members who like to know the next five stocks in the list, these are listed below the main table. As a reminder, this strategy is checked for the need to rebalance on the 1st of each month (or the next business day if the 1st is a non-trading day). The portfolio will only be rebalanced when it drifts sufficiently far from the ‘ideal’ portfolio to reduce trading costs and trading activity in this strategy. As a result, the strategy may suit long term investors who wish to perform minimal portfolio management. For specific details of closed trades, please see our historical performance page.
As a reminder, this strategy is checked for the need to rebalance on the 1st of each month (or the next business day if the 1st is a non-trading day). The portfolio will only be rebalanced when it drifts sufficiently far from the ‘ideal’ portfolio to reduce trading costs and trading activity in this strategy. As a result, the strategy may suit long term investors who wish to perform minimal portfolio management. For specific details of closed trades, please see our closed trades page.
For historical trades updates please click here.
|Stock code||Stock name||Qty||Entry date||Entry price||Current price||Current value||Dividends||Dividend yield||Return percentage|
|263||2 Sep 19||$18.98||$20.86||$5,486.18||$0.00||8.01%||9.91%|
|166||1 Nov 17||$30.09||$26.51||$4,400.66||$4.00||8.48%||1.40%|
Commonwealth Bank of Australia
|64||1 Nov 17||$77.79||$89.44||$5,724.16||$8.62||7.22%||26.06%|
|1,474||1 Nov 19||$3.39||$3.06||$4,510.44||$0.00||7.19%||(9.73%)|
National Australia Bank
|152||1 Nov 17||$32.81||$27.33||$4,154.16||$4.63||9.17%||(2.59%)|
|1,424||1 Feb 19||$3.51||$2.62||$3,730.88||$0.14||7.44%||(21.37%)|
|384||1 Feb 19||$13.01||$12.49||$4,796.16||$0.78||12.05%||2.00%|
|150||1 Nov 17||$33.12||$25.61||$3,841.50||$4.56||9.90%||(8.91%)|
|154||1 Feb 19||$32.38||$45.45||$6,999.30||$2.78||8.78%||48.95%|
|144||3 Jun 19||$34.50||$33.34||$4,800.96||$0.53||7.43%||(1.83%)|
*Quantities are based on investing $5,000 per stock on the entry date
**Dividend yields are gross
Next Five Top Dividend Stocks
|Stock Code||Gross Yield|
ASX Blue Chip Strategy
The Blue Chip strategy has been backtested over 22 years and selects ten of the top 50 Australian stocks. This strategy represents a simple, yet robust, diversification option that has continually outperformed the Australian market. We advise that members buy equal proportions of the ten recommended stocks to hold for the long term. From there, optimisation is only needed upon instruction, which occurs on average four times per year (but can be more or less frequent).
How To Follow This Strategy
Rivkin’s strategies are designed to be as easy as possible for investors to follow. To follow the ASX Blue Chip strategy, investors need to buy the securities in the above table in equal weights. Weights can drift over time as prices move, but we only recommend re-balancing security weights if they stray too far from the target weight (10% per security). The volumes shown in this table are based on a $5,000 investment per stock which produces a $50,000 portfolio.
Every now and then, the list of stocks will be updated in what we call a ‘re-balance’. This means investors will need to look at the new list and sell any stocks that are no longer on the list. After these stocks are sold, the new stocks from the current table can be bought.
About The Strategy
The ASX Blue Chip strategy was developed and launched by Rivkin in 2009 and became one of our best performing strategies in the years following launch. The strategy provides investors with a high dividend yield that also includes franking credits in most cases. Please click here to find out more about the strategy.
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