Dogs of The Footsie 2017 portfolio

Constructing this strategy is simple: choose the 10 FTSE 100 shares with the highest yield, invest equal amounts in all 10 and hold for a year.

The Dogs of the Footsie strategy is explained in the March 2017 edition of the magazine and here.

Over the past 15 years the Dogs strategy has produced spectacular performance. For example, the 10 Dogs of 2009 made an average return of 86.5 per cent after one year compared with 31.9 per cent for the FTSE 100 index (dividends reinvested).

The Dogs are also well ahead over the past 15 years, growing by an average annual 12.2 per cent in total return terms, two-and-a-half times the 4.8 per cent total return figure for the FTSE 100 index.

However, 2015 proved a more challenging year, and for only the fourth time in their 15-year history, last year's Dogs underperformed the FTSE 100 index. They suffered total return losses of almost 13 per cent, twice those of the Footsie.

Our Dogs mined a rich seam in 2016, as a stellar performance from resources companies helped them achieve one of the best results in the portfolio's history with 43% gains over the year.

2017's Dogs of the Footsie portfolio is more diverse than usual: while past portfolios have been dominated by utilities or financials or commodities, depending on the economic cycle, this one spans a wide range of sectors.

Please note that the investment of dividend payments is not included in the current value (notional £1,000 invested in each) as listed below. The current value below does not allow for 0.5 per cent stamp duty reserve tax, or Interactive Investor's £10 dealing charge in each share (£5 for frequent traders).

Investors can follow this portfolio or set one up themselves. The first step is to find the 10 highest yielding shares of the FTSE 100 index. You can do this here: www.iii.co.uk/markets/?type=stockfilter.

Check that a potential member has not already warned that its dividend will be cut. When you have identified the 10 shares you must split your chosen investment level between all 10 shares equally and hold all of them for one year.

View the latest Dogs of the Footsie update here. The live feed below shows performance of the 2017 portfolio since inception on 1 February 2017.

TODAY: Wednesday 18 October 2017 TIME: 00:26

Investment Return Profit / Loss %
Holdings 9,942.45 10,855.87 +913.42 +9.19
Above figures in UK pound sterling.
Name Shares / Units Cost Current Value Profit / Loss
BP (BP.) 211 £4.721 £1,037.49 +41.36 (+4.15%)
Capita (CPI) 200 £4.984 £1,088.00 +91.20 (+9.15%)
HSBC Holdings (HSBA) 147 £6.768 £1,094.12 +99.22 (+9.97%)
Legal & General Grp (LGEN) 423 £2.359 £1,118.84 +120.98 (+12.12%)
Marks & Spencer (MKS) 294 £3.393 £1,023.12 +25.58 (+2.56%)
Persimmon (PSN) 51 £19.47 £1,426.47 +433.50 (+43.66%)
Royal Dutch Shell B (RDSB) 46 £21.285 £1,066.97 +87.86 (+8.97%)
Royal Mail (RMG) 244 £4.097 £950.14 -49.53 (-4.95%)
SSE (SSE) 67 £14.75 £927.95 -60.30 (-6.10%)
Vodafone (VOD) 518 £1.929 £1,122.77 +123.54 (+12.36%)

Current value calculated using data at least 15 minutes delayed. Source: Interactive Investor.

Comments

Reply to Dumb

Looking in retrospect is easy, we need a glass ball to see what is coming, or a time machine. M.

Dumb

This is a good strategy but really... holding it into the election and the grexit and now the chinesecshare slide would have been suicidal in 2015. Should be in cash watching the yield shares you could buy increasing.

Self select ISA's

Hi All,

I'm looking at doing this in Feb. However, I won't to invest £1000 in the dogs and the dogs will be my only investment this year.

Is using a self select ISA the best way to do this?

If yes, can anyone recommend one for me please.

Thanks,

M

£1000 self select isa dogs of ftse 100

I have a self select isa. For my isa the annual cost for this would £11.95 per share therefor charges for year = £195 for £1000 invested in the 10 dogs. You are well into the realms of not worthwhile here. Need to invest a larger sum or take a much higher risk in selecting first five dogs. Charges are a killer on small investments. personaly would not do either of these.

What happens in Feb 2015?

Hi there,

I'm thinking ahead to 2015 and the Dogs that will run from Feb 2015 - Feb 2016.

Let's say some of the dogs from this year are in the running for next year. When I get to February 2015, do I sell ALL shares from this year and re-purchase, even if I already hold shares from 2014 in that company? I assume I do need to do this, so that the money is distributed evenly again?

Are there any conditions where I should not do this?

Many thanks.

You do not sell ALL the

You do not sell ALL the shares each year, just those that can be replaced with another higher paying dividend.

Ok thanks. So as an

Ok thanks.

So as an example, let's say Imperial Tobacco, United Utilities and National Grid are all included in the 2015-2016 Dogs, but none of the others are. I would leave the three of these exactly as they are, sell the remaining seven and invest £7000 across the new seven? (I'd have to top up my available cash to invest due to the losses on the others).

Is replacing worthwhile?

Replaced dog 10 with a yield of say 4% with a new dog with a yield of say 4.2% isn't worth it when you factor 0.5% stamp duty and transaction costs. You would need a 2% gain in yield to make it worthwhile.
I think the concept is valid but only include covered growing Divi stocks as the churn rate in the portfolio will be minimal

Flopping

The dogs seem to be spectacularly flopping at the moment. Is this typical?

Should we ditch or just hang in there?

dogs ftse

If you are in it hold but would not go there for 2017

Hang in there

Year end rally coming.

Dividend will be cut...

Go here: http://www.investegate.co.uk/ search for the company and look for news of 'Dividend Declaration' if the dividend is less than last year. The dividend has been cut.

how exactly ??

does one go about doing this...
"Check that a potential member has not already warned that its dividend will be cut." ???
kind regards

I'm interested to know this

I'm interested to know this too, please.

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