Dogs of The Dow
The Dogs of the Dow strategy is a well known simple strategy which incorporates high dividend yields. The strategy dictates that the investor compile a list of the 10 highest dividend yielding stocks from the Dow Jones Industrial Average and buying an equal position in all 10 at the beginning of each year. At the end of each year, the investor finds the 10 highest dividend yield stocks again, and reallocates their positions so as to have an equal position in all 10 Dogs of the Dow. The Dogs of the Dow made a compounded annual return of 18% from 1975 to 1999 outperforming the market by 3%. This would make $10,000 turn into $625,000 in 25 years.
Read more about this topic: High-yield Stocks
Famous quotes containing the words dogs and/or dow:
“even the dreadful martyrdom must run its course
Anyhow in a corner, some untidy spot
Where the dogs go on with their doggy life and the torturer’s horse
Scratches its innocent behind on a tree.”
—W.H. (Wystan Hugh)
“The woman was old and ragged and gray
And bent with the chill of the Winter’s day.”
—Mary Dow Brine (1816–1913)