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Lloyds Banking among the "Dogs of the Footsie" to leave a small parcel on the pavement

Published: 14:50 01 Oct 2018 BST

French bulldog

With just four months before our annual refresh of the “Dogs of the Footsie” mechanical investment strategy, things are not looking good.

Since the end of January, when the portfolio was refreshed, it has fallen 2.4%; over the same period, the FTSE 100 has fallen 1.16%.

READ Bumper year for the big ticket "Dogs of the Footsie"

The stock screen is focused on high yielding stocks so fortunately there have been some bumper dividends to offset the share price losses.

So far, since the refresh at the end of January, the portfolio has trousered £668 in dividends, which together with £13 stuck down the back of the sofa (money left over when we refreshed the portfolio) means the portfolio has £681 in cash.

Add that to the value of the shareholdings and the portfolio is worth £11,691 – up a lousy seven quid on where it was before we refreshed the portfolio.

It hardly seems worth it, does it?

Still, there are four months to go and if this year the strategy looks to be doing no better than keeping pace with the market, we’re still up £1,691 on a (virtual) £10,000 investment made 20 months ago, which is not bad.

Interestingly, dividend income in the first 12 months of this experiment was £629, whereas two-thirds of the way through the second 12-month period, the dividend income is already superior, at £668. That partly reflects that, as a result of reinvesting dividends, we now have more shares that are generating dividends.

It’s a virtuous circle.

Only three greyhounds among this year's dogs​

In terms of share price performance, it has been an odd year with only three of the 10 constituents currently in profit (not taking into account their dividend pay-outs). Evraz has been the star, gaining £564; Persimmon has done well, adding £186 and Legal & General has just about washed its face, climbing £90.

The big losers have been BT Group (-£265), Lloyds Banking (-£215) and Marks & Spencer (-£168).

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