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The “Dogs of the Dow” is a widely-known passive investment strategy that says to
simply buy the 10 highest yielding Dow 30 stocks at the start of each year. Below is a look at how 2013’s Dogs of the Dow have fared thus far. You’ll be pleasantly surprised. Words: 289
So say edited excerpts from the introduction to an article entitled Checking Up On The Dogs Of The Dow posted by the team at bespokeinvest.com.
[The following is presented by Lorimer Wilson, editor of www.munKNEE.com and the FREE Market Intelligence Report newsletter (sample here). The excerpts may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
The article goes on to say in further edited excerpts to ensure you a fast and easy read:
As shown below, the 10 highest yielding Dow stocks at the start of the year are up an average of 26.22% year-to-date…outperforming the average gain of 24.26% for the 20 other stocks that were in the Dow at the start of the year. Outperformance is outperformance, though, and if it holds it will be a winning year for the strategy.
…[B]elow is a look at the 10 Dow stocks (highlighted in yellow) that would currently gain entry to the “Dogs of the Dow” portfolio in 2014. 7 stocks would rollover from last year’s portfolio, and there would be 3 newcomers to this year’s list — Cisco, Microsoft and Chevron. Who would have thought a dozen years ago that Cisco and Microsoft, along with Intel, would be part of the Dogs of the Dow??
One other thing to note is that the 3 stocks added to the Dow in September of this year, Goldman Sachs, Visa and Nike, are all at the bottom of the index in terms of dividend yield. Visa is actually the lowest yielding stock in the index at just 0.78%.
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
*http://www.bespokeinvest.com/thinkbig/2013/12/11/checking-up-on-the-dogs-of-the-dow.html (This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported License.)
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