Six months ago, I invested my cold, hard cash into 10 high-yield dividend stocks I believe will beat the market. Let's see the results so far:

Company

Average Cost

Shares

Recent Price

Total Value

Return

Altria (NYSE: MO)

$24.86

40

$25.86

$1,034.40

4.02%

Philip Morris (NYSE: PM)

$61.83

16

$68.72

$1,099.52

11.14%

National Grid (NYSE: NGG)

$45.63

22

$49.42

$1,087.24

8.31%

Annaly Capital Management (NYSE: NLY)

$17.55

57

$18.05

$1,028.85

2.85%

Frontier Communications (NYSE: FTR)

$8.95

137

$7.00

$959.00

(21.79%)

Southern Co.

$37.87

26

$40.02

$1,040.52

5.68%

France Telecom (NYSE: FTE)

$22.23

45

$18.22

$819.90

(18.04%)

Vodafone Group (NYSE: VOD)

$28.69

38

$26.73

$1,015.74

(6.83%)

Eli Lilly

$34.48

29

$35.42

$1,027.18

2.73%

Bristol-Myers Squibb

$25.37

39

$28.05

$1,093.95

10.56%

Cash

  

49.31

  

49.31

0%

Dividends Receivable

  

26.5

  

26.5

0%

Total Portfolio

     

$10,282.11

2.82%

Investment In SPY

        

(13.69%)

Return vs SPY (percentage points)

        

+16.51

Source: Capital IQ, a division of Standard and Poor's, as of Aug. 22, 2011.

Over the past week, the S&P 500 fell 6.54%. As the market fell, our portfolio outperformance rose, moving from beating the market by 11.89% to beating the market by 16.51%. While outperformance is always good, it should be taken with a grain of salt. We're investing for the long term, and it's only been six months. I firmly believe the results will bear us out.

Movers and shakers
Of our stocks, the biggest mover in the portfolio the past week was France Telecom, which fell 5%. Our other big telecom giant Vodafone also fell 3.43%.

Money!
There are four upcoming dividends for the portfolio:

  1. Southern Co. will pay a dividend of $0.4725 on Sept. 6. The ex-dividend date was July 28.
  2. Eli Lilly will pay a dividend of $0.49 on Sept. 9. The ex-dividend date was Aug. 11.
  3. Frontier Communications will pay a dividend of $0.1875 on Sept. 30. The ex-dividend date is Sept. 7.
  4. France Telecom will pay a dividend of $0.85 on Sept. 8. The ex-dividend date is Sept. 5.

Commentary
On Monday, dividend academic Jeremy Siegel co-wrote an op-ed in The Wall Street Journal on why he believes the bond market is in a bubble, and why stocks, especially dividend-paying ones, are undervalued. My favorite part: "The dividend yield on the S&P 500 index exceeds 2%, and these dividends represent less than 30% of profits these firms earn. This gives management a huge cushion to maintain dividends if indeed the U.S. economy experiences a double dip recession."

My Foolish bottom line
I'm highly confident in this portfolio's ability to crush the market over the next decade, and that's why I put $10,000 of my personal cash into these stocks. My strategy is simple. I'm buying strong companies with outsized dividends, reinvesting those dividends, and holding them for the long run. Over the coming year, I'll track my performance, update you on when I'm going to reinvest all my dividends, and keep you abreast of news affecting these companies.

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