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Weiss Blue Chip Div Yield Screen

Performance

  Weiss Blue Chip Div Yield S&P 500
YTD Return: 7% 8.4%
Five Year Return: 18.9% 14.4%
Ten Year Return: 10.8% 6.1%
Inception: 11.2% 4.4%
Data as of 8/29/2014
The Weiss Blue Chip Div Yield Screen represents AAII's interpretation of the investment approach and is not determined by the original strategist. The list of passing companies represents a hypothetical portfolio, which is used to track the screen’s performance on a chart.

Passing Companies

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Screening Criteria

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Chart

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"A bird in the hand is worth two in the bush."

It's an old saying, but it's a sentiment felt by many conservative stock investors who prefer the stocks of stable and established companies that provide part of their return sooner, in the form of dividends, rather than later, in the form of capital gains.

How does one choose among these kinds of stocks? One approach is followed by Geraldine Weiss, editor of the highly regarded Investment Quality Trends, a La Jolla, California-based newsletter that tracks and recommends stocks based on her approach.

Weiss melds a conservative, blue-chip investment style with a value approach, using dividend yield as a guide to value. A high dividend yield signals out-of-favor stocks, but many such stocks are out-of-favor for good reason—they are financially troubled. Weiss' strategy attempts to weed out truly financially troubled firms by seeking out-of-favor stocks within a relatively safe sector of high-quality stocks.

Weiss has outlined her approach in two books, "Dividends Don't Lie," with Janet Lowe (Longman Publishing, 1988, out of print), and her more recent "The Dividend Connection," written with son Gregory Weiss (Dearborn Financial Publishing, 1995, $24.95, 800/245-2665). These writings are the primary source for this article.

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