The Australian Financial Review Smart Investor published the list of stocks with the highest dividend yields among the largest companies on the Australian Stock Exchange.

From the article titled Downunder Dogs:

“Flea-bitten may be a bit harsh for some of these stocks but they are nevertheless this month’s Downunder Dogs – the stocks with the highest dividend yields among the largest 50 companies on the Australian Stock Exchange.

So what qualifies them as dogs? If you make the rather simplistic assumption that dividend levels remain more or less stable, then the dividend yield should rise as the share price falls. So by buying companies with high dividend yields you are buying shares that are out of favour – hence, “dogs”. And why would you want to buy a dog? The theory – based on the US stock-picking system known as the Dogs of the Dow – is that this year’s dogs often turn out to be next year’s prize pooches. Do you own these puppies?”

Source: Australian Financial Review