The Dow 5
The Dow 5 strategy is a variation of the Dogs of the Dow strategy. This strategy dictates the investor compile a list of the 10 highest dividend yielding stocks from the Dow Jones Industrial Average, and buy the 5 lowest priced of those 10 stocks at the beginning of each year. At the end of every year, the investor remakes the list, and reallocates their positions so as to have an equal position in all 5 stocks. This strategy has made an annual return of 19.4% from 1975 to 1999. This would make $10,000 turn into $840,000 in 25 years.
Read more about this topic: High-yield Stocks
Famous quotes containing the word dow:
“The woman was old and ragged and gray
And bent with the chill of the Winter’s day.”
—Mary Dow Brine (1816–1913)