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 – 01 April 2020
As it now the first trading day of the month, we have checked the Blue-Chip portfolio for the need for a rebalance. One of our stocks held, Medibank Private (MPL) has dropped to No.17 on the list, meaning we need to rebalance the portfolio. Given the sharp price declines over the past month, many stocks now have a gross dividend yield above 10%, so we have made the decision to lift our upper threshold from 10% to 15% for this month, to avoid excluding too many names.
In terms of action required, five stocks need to be replaced. We recommend members sell their holdings in Suncorp Group (SUN), Vicinity Centres (VCX), Westpac Banking (WBC), Medibank Private (MPL), and S32 (S32).
The five new stocks to be added to the portfolio include; Stockland (SGP), Woodside Petroleum (WPL), Rio Tinto (RIO), Fortescue Metals group (FMG), and Origin Energy (ORG).
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.
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|
|210||2 Sep 19||$18.98||$17.37||$3,647.70||$0.47||8.98%||(6.01%)|
|166||1 Nov 17||$30.09||$15.77||$2,617.82||$4.00||13.56%||(34.30%)|
|148||2 Mar 20||$33.60||$31.84||$4,712.32||$0.65||10.39%||(3.30%)|
Commonwealth Bank of Australia
|64||1 Nov 17||$77.79||$60.27||$3,857.28||$10.62||10.01%||(8.87%)|
Fortescue Metals Group
|500||1 Apr 20||$10.21||$11.31||$5,655.00||$0.00||10.00%||10.77%|
National Australia Bank
|152||1 Nov 17||$32.81||$15.57||$2,366.64||$4.63||14.95%||(38.43%)|
|1,141||1 Apr 20||$4.55||$4.96||$5,659.36||$0.00||9.76%||9.01%|
|59||1 Apr 20||$87.84||$89.80||$5,298.20||$0.00||10.89%||2.23%|
|1,976||1 Apr 20||$2.65||$2.78||$5,493.28||$0.00||12.21%||4.91%|
|274||1 Apr 20||$18.89||$21.27||$5,827.98||$0.00||11.19%||12.60%|
*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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