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:
“I can forgive even that wrong of wrongs,
Those undreamt accidents that have made me
Seeing that Fame has perished this long while,
Being but a part of ancient ceremony
Notorious, till all my priceless things
Are but a post the passing dogs defile.”
—William Butler Yeats (1865–1939)
“The woman was old and ragged and gray
And bent with the chill of the Winter’s day.”
—Mary Dow Brine (1816–1913)