Posted by sbaxman111 on 18th of Oct 2016 at 10:24 pm
The "dogs of the Dow" strategy, popularized by Michael
O'Higgins in his 1991 book "Beating the Dow," entails buying the 10
Dow stocks with the highest dividend yields (which tend to be
investment "dogs," given that rising yields tend to be functions of
falling prices) and holding on to them for a year.
At the end of 2015, the list of the highest-yielding stocks
was topped by
Verizon and
Chevron;
Caterpillar,
Exxon
Mobil and
IBM round out the top five. Together, these stocks have
generated an average total return of 18.3 percent through Monday's
close, according to a CNBC analysis of FactSet data. Add in 2015's
next-highest-yielding quintet, and the classic strategy has yielded
a gain of 14 percent this year.
This compares to an average total return of 6.4 percent for
all 30 Dow stocks.
Posted by sbaxman111 on 19th of Oct 2016 at 09:48 am
Sorry, I can't do this for you. I simply found the
information for these two posts and passed it on here. I might look
at how the Dogs would have done using Spy Pro trade dates
though.
Newsletter
Subscribe to our email list for regular free market updates
as well as a chance to get coupons!
Dogs of the Dow
Posted by sbaxman111 on 18th of Oct 2016 at 10:24 pm
The "dogs of the Dow" strategy, popularized by Michael O'Higgins in his 1991 book "Beating the Dow," entails buying the 10 Dow stocks with the highest dividend yields (which tend to be investment "dogs," given that rising yields tend to be functions of falling prices) and holding on to them for a year.
At the end of 2015, the list of the highest-yielding stocks was topped by Verizon and Chevron; Caterpillar, Exxon Mobil and IBM round out the top five. Together, these stocks have generated an average total return of 18.3 percent through Monday's close, according to a CNBC analysis of FactSet data. Add in 2015's next-highest-yielding quintet, and the classic strategy has yielded a gain of 14 percent this year.
This compares to an average total return of 6.4 percent for all 30 Dow stocks.
sbaxman111, Is there anyway you can
Posted by landgreen on 18th of Oct 2016 at 11:37 pm
sbaxman111,
Is there anyway you can compare the Dogs of the Dow data to your SPX Decile Performance data posted by you on Sept 7.. pretty curious!
Dogs of the Dow
Posted by sbaxman111 on 19th of Oct 2016 at 09:48 am
Sorry, I can't do this for you. I simply found the information for these two posts and passed it on here. I might look at how the Dogs would have done using Spy Pro trade dates though.