Most investors have probably heard of the Dogs of the Dow strategy. Rank the dividend-yielding Dow Jones Industrial Average stocks from highest to lowest yield and buy the top 10. Hold for one year and a day and sell. Then do it all over again. This strategy was all the rage back in the early 1990s, and for good reason. The strategy had a market-beating track record and only required about an hour per year to pick the stocks. However, the strategy faltered when the market went nuts in the late 1990s, causing investors to lose interest.
As of Dec. 31, 2009, the Dogs of the Dow strategy has produced annual returns of 9%, 3.2%, and 1.1% over the past 15 years, 10 years, and five years, respectively. What if we applied this to the S&P 500, an index of 500 stocks compiled by Standard & Poor's that includes "leading companies in leading industries of the U.S. economy, capturing 75% coverage of U.S. equities." While the S&P 500 also has some non-dividend paying stocks, 372 (74.4%) of the companies in the index pay dividends.
Source: Motley Fool
Related Articles:
________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
-
BDCs can be excellent investment options for those seeking high returns, particularly when acquired at favorable valuations and supported by...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.