Dogs of The Footsie 2016 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 2016 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.
The 2016 portfolio's start date is 1 February and the constituents are listed below and profiled here, along with their share price performance and links to factsheets at our sister website Interactive Investor.
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.