Since the strategy "Dogs Of The Dow" was published, a lot has changed. For a start, dividends alone do not have predictive power as before. Presently, dividends play a supporting role and equity repurchases are the main star.
When Michael B. O'Higgins tested and popularized his idea (1991), dividends were the predominant part of cash distributions to shareholders. During the preceding decades, the average dividend payout ratio for the S&P 500 companies was around 50% of the net income. Similarly, dividends were between 70% and 80% of the total distributions to shareholders.
During late 1990,