How to find the best stocks in a bad market using this proven dividend yield strategy

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The average model portfolio of the respected stock newsletter founded by late Geraldine Weiss beat the S&P 500’s total return while incurring 26% less risk for 16 years. Her strategy just needs a calculator to be implemented.

Geraldine Weiss, the founding editor of the respected stock newsletter Investment Quality Trends, died on Apr. 25 at the age of 96.

It’s rare to beat the market at all, and especially with that much less volatility, which helps to explain why over this period Weiss’ newsletter was No. 1 for risk-adjusted performance. Simple method The method Weiss codified is simple: Focus only on blue-chip stocks with strong financials that keep paying dividends through thick and thin, and buy only those in this select subset whose dividend yields are at or near the high end of their historical ranges.

Stocks meeting these criteria will be financially secure blue-chips, unlikely to cut their dividends. For such companies, a high yield is less likely to indicate that a dividend cut is imminent and instead suggests undervaluation.

 

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