By Lowell Herr:
As an experiment I set out to test the SHY cutoff model with a group of Dividend Aristocrat stocks. The SHY model is explained in detail in this Seeking Alpha article. In the software I used for this experiment I had spots for nine stocks plus SHY. To fill those nine openings I pulled down a list of Dividend Aristocrat securities and selected the first nine that showed yields of 2% or higher. Those nine stocks are the following and there was no additional identifying metric other than yield.
- PG – The Procter & Gamble Company
- GPC – Genuine Parts Company
- MMM – 3M Company
- JNJ – Johnson & Johnson
- CB – The Chubb Corporation
- SWK – Stanley Black and Decker, Inc.
- FRT – Federal Realty Investment Trust
- TGT – Target Corporation
- GWW – W.W. Grainger, Inc. (On another list I see where GWW now has a yield below
