Dogs of the Dow vs. Dogs of the Hang Seng 2021

Dogs of the Dow vs. Dogs of the Hang Seng 2021

The Dogs of the Hang Seng (DotHS) is a deviation of the Dogs of the Dow (DotD). It was set up to see if that famous Dow Jones investment strategy could hold water here in Hong Kong.

This article is not about which dogs did better. That said, it makes the title Dogs of the Dow vs. Dogs of the Hang Seng 2021  not any less spectacular.

The goal is to see how the 2 portfolios did using the same (or similar) strategy on totally different markets.

What is this Dogs of the .. strategy  and how does it work?

The Dogs of the Dow strategy is one where investors select the ten stocks that have the highest dividend yield from the stocks in the Dow Jones Industrial Index (DJIA) after the close of business on the last trading day of the year. Once the ten stocks are determined, an investor invests an equal dollar amount in each of the ten stocks and holds them for the entire next year. (Source)

For the Hang Seng equivalent you take the 10 Blue Chip Companies that have the highest yield at January 1. Each position of HK$10,000 so the total investment is HK$100,000

Then just sit and wait. Until December 31 and see how much your investment is worth and calculate dividends received over that year.

Now, let’s look at the performance of the DotD.

Luckily  Mr. Templeton wrote a  comprehensive article on Seeking Alpha. You can check that out here . He came to the following:

dogs of the dow performance 2021

 

The DotD did an amazing 16%. Which is a good performance. Only 3 listings went in the red.

 

In the other corner we have the Results of  DotHS :

A flashback, the year 2020 did not go so well for the Hang Seng Pack. This post has the dirty details. 2020 ended -20% for the DotHS while the Hang Seng Index (HSI) closed that year -3%. Ouchh

The following year, 2021, logged a better performance. The Dogs of those 12 months raised plus 23% incl dividends. The HSI closed 15% lower. The details you will find here, in this post.

Score 50-50

Something that is a difference compared to the Dogs of the Dow with Mr. Templeton: The results are hold against the performance of 2 ETFs. The result of The Hang Seng Dogs is hold to the HSI in it self.

Let’s get 2 ETFs that hold a portfolio similar to the DotHS.

HKG:2800 Trackerfund. Performance 2021: -13% excl yield. Yield 2.4%

HKG:3110 Global X Hang Seng High Dividend Yield ETF.  Performance 2021: +0.002% excl yield. Yield: 7.3%

That will make things look like this:

Dogs results 2021

The DotHS outperformed the 2 ETFs. Where the DotD were outperformed by their ETF counterparts.

Still, both packs of dogs performed well in a year that was not easy and quite edgy.

 

 

 

 

FREE: 25 highest yield Dividend Growth Stocks

Yes for FREE, no spam.

The purpose of the Champion membership is two-fold:

  1. For Dividend Growth Investors or investors that want to supplement their portfolio with income generating stocks.
  2. For International Investors looking for long term (buy-and-hold) opportunities.

Put simply, the Champion membership is your investment guide to income and value generating stocks on the world renowned Hong Kong stock exchange.

For FPS payment (Hong Kong) :

1 year Champion Membership for only

HKD 1,540.00

FPS ID: 164241556
or FPS email: Petra@lucky-rooster.com
IMPORTANT:
  1. In the payment description refer to your email address
  2. Send email with your proof of payment to petra@lucky-rooster.com
  3. Your account at HKDS will take 3-8 hours to be activated.
  4. You will receive an email with you login ASAP
  5. AGAIN: after payment, send email to petra@lucky-rooster.com
THANK YOU FOR FLYING WITH HKDS

One last thing:

Follow via Facebook

We do really cool stuff over there!

[contact-form-7 id=”120″ title=”Contact form 1″]

 

 

 

Updates of the

25 Dividend Growth Stocks with the highest yield

in your mail box

YES, FOR FREE

No spam, promise!


No spam, promise!

Yield score card

[woocommerce_checkout]

Error! The button ID (6591) you specified in the shortcode does not exist. You may have deleted this payment button. Go to the Manage Payment Buttons interface then copy and paste the correct button ID in the shortcode.

Click ‘Buy Now’ button.
it will redirect you to the Paypal site.
After your payments is received,
you can create your login.
Thank you for your support.

[woocommerce_checkout]

By clicking the Í agree button below, you understand the following:

1- As this is considered a product that is consumed immediately, no refunds can be rewarded

2- You also understand, all products offered on Hong Kong Dividend Stocks are for information and entertainment purposes.
No claims can be made after purchase.

Error! The button ID (3640) you specified in the shortcode does not exist. You may have deleted this payment button. Go to the Manage Payment Buttons interface then copy and paste the correct button ID in the shortcode.


YES, FOR FREE


No spam, promise!