Strategy
Blue Chip
Australia

ASX Blue Chip Strategy

2 Dec 2019
By
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 – 02 December 2019

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.

Stock codeStock nameQtyEntry dateEntry priceCurrent priceCurrent valueDividendsDividend yieldReturn percentage
AGL
AGL Energy
2632 Sep 19$18.98$20.42$5,370.46$0.007.83%7.59%
ANZ
ANZ Bank
1661 Nov 17$30.09$24.43$4,055.38$4.008.79%(5.52%)
CBA
Commonwealth Bank of Australia
641 Nov 17$77.79$79.24$5,071.36$8.627.62%12.95%
MPL
Medibank Private
1,4791 Nov 19$3.38$3.23$4,777.17$0.006.84%(4.44%)
NAB
National Australia Bank
1521 Nov 17$32.81$24.96$3,793.92$4.639.16%(9.81%)
S32
South32
1,4241 Feb 19$3.51$2.72$3,873.28$0.147.28%(18.52%)
SUN
Suncorp
3841 Feb 19$13.01$12.98$4,984.32$0.7811.58%5.76%
WBC
Westpac Bank
1501 Nov 17$33.12$24.21$3,631.50$4.5610.14%(13.13%)
WES
Wesfarmers
1541 Feb 19$32.38$40.60$6,252.40$2.789.37%33.97%
WPL
Woodside Petroleum
1443 Jun 19$34.50$34.09$4,908.96$0.537.47%0.35%

*Quantities are based on investing $5,000 per stock on the entry date

Next Five Top Dividend Stocks

Stock CodeGross Yield
ASX6.25%
SCG6.01%
VCX5.93%
TLS5.92%
IAG5.47%

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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David King

Can you please publish the full list of the top 15 dividend stocks?

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