(Alliance News) - In 2024, high-yielding stocks in the Piazza Affari, known as "Dogs," posted a positive performance of 27 percent, outperforming the FTSE Mib index, which rose just under 13 percent.

As Corriere Monday points out, this result was driven by the recovery of financial stocks, with Unipol as the best performer with 131 percent. However, some stocks such as Snam - down 9 percent - and Enel - up 3 percent - disappointed.

The "Dogs" portfolio is based on the FTSE Mib stocks with the highest dividend yields, selected annually. For 2025, the average expected yield is 8.2 percent, with a strong presence of financials, up 70 percent, as well as utilities and energy, which offer stability in a recession. Stocks such as Snam and Stellantis also aim to contribute to the overall return.

The method, which originated in the U.S. more than 30 years ago, has had an average annual return of 9.9 percent since 2000. However, it has often underperformed the overall market in recent years, hurt by investors' focus on growth rather than value stocks.

The challenge between "Dogs" and blue chips is renewed in both Italy and the US, with the strategy remaining attractive to those seeking stability and high dividends in an uncertain environment.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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