Large Cap Dividend MFI Stocks

As John Carney has been asking for a cut on large cap (about $1b+), dividend stocks (2.6% or higher yield) performance - I did a quick and dirty analysis.  This first table is for 2010 and forward and that is my best data on dividends.  Recall my starting point is a MFI screen of $100m or greater market cap (50 stocks each month):

Yield Rank	Largest	Smallest	Total
2.6% and higher	34.0%	8.1%	22.5%
Under 2.6%	11.1%	8.3%	9.5%
Total	19.3%	8.3%	13.4%

That is pretty stunning.  We knew dividend stocks did better (22.5% versus 9.5%). But large cap dividend stocks did even better (34%).  Let us see how this looks going back to 2006:

Yield Rank	Largest	Smallest	Total
2.6% and higher	30.5%	12.3%	21.6%
Under 2.6%	9.7%	4.4%	6.3%
Total	16.1%	5.9%	9.9%

Pretty interesting.  Of course you can never assume that what has happened in the past will happen in the future. But it might be worth at least a shot!  The differential seems to be much more than chance.

Here are current stocks on list meeting that criteria (as of last weekend):

Stock	Initial Price	52 week low	Mkt Cap
CSCO	25.97	20.22	132,863
CA	29.53	27.84	12,964
COH	34.63	33.39	9,612
GME	45.68	33.10	5,230
BAH	21.00	16.61	3,212
BKE	42.80	41.45	2,070
PDLI	9.50	7.38	1,648
RGR	58.11	48.52	1,127

Guess you can see why I added CA and CSCO in May!