F958B HYP-esque strategy

One of my favourite Motley Fool posters, F958B, suggested an "equity income" strategy that significantly outperformed the Footsie over all time periods he studied. It was also not reliant on portfolio size.

What is that method? That method is "method E", which is as follows:

  • Select only the non-cyclicals from the FTSE.
  • Rank by yield.
  • Select the ten highest yield non-cyclicals.

Cyclicals with high yields tend to be very problematic, and excluding them boosts performance.

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About mcturra2000

Computer programmer living in Scotland.
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