This is not a good day for Jane Mendillo, the (soon to be former) money manager running Harvard University’s endowment. The word is out that in the past five years the $32.7 billion endowment has posted an annualized return of just 1.7%. Other Ivy League schools didn’t fare much better. Over the same period, Dartmouth, Princeton, Stanford and Yale posted annualized returns of 4.4%, 4.2%, 3.3% and 3.3% respectively.
How is it that the best and brightest of the academic world missed out on the huge market rebound in the past five years? That’s a question for another day, but what I can tell you is that it’s not too difficult to beat the Ivy League’s track record. All you just have to know is where to look for the best dividend stocks, those that pack a one-two punch of income and capital gains potential.
And now that a bunch of high-yield stocks have gone ex-dividend, you can go ahead and pick up shares on the cheap and wait for the next big payout. Let’s take a look at ten stocks that earn top marks in my “grade book:”
|DOW||Dow Chemical Co.||2.8%||Strong Buy|
|HP||Helmerich & Payne||2.2%||Strong Buy|
|LMT||Lockheed Martin Corp.||3.2%||Strong Buy|
|LYB||LyondellBasell Industries||2.8%||Strong Buy|
|MRK||Merck & Co. Inc.||3.0%||Buy|
|NOC||Northrop Grumman Corp.||2.3%||Strong Buy|
|RTN||Raytheon Co.||2.5%||Strong Buy|
|WFC||Wells Fargo & Co.||2.7%||Buy|
Between a well-diversifed investing strategy and these ten premium dividend stocks, you’re on your way to beating the nation’s top institutions.