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)
Dividend Growth Stocks News
~
Popular Posts Last 30 Days
-
If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as bei...
-
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...
-
We screened our 24/7 Wall St. dividend equity research database and found 5 stocks that combined can generate over $3,000 of annual passive ...
-
The stock market has been on an upward path of late, with some of the most prominent stocks hitting astronomical highs. The dividend yield o...
-
Dividend growth stocks can be incredibly attractive investments if you crave recurring income. As these types of stocks raise their dividend...
-
In my opinion, there are three criteria investors should consider when evaluating a particular stock for their portfolio. The first is histo...
-
Dividends can be a tremendously powerful part of your investing strategy. Not only can they give you a continuing source of cash to reinvest...
-
In this article, we discuss 5 best March dividend stocks to buy. If you want to read our detailed analysis of dividend capture strategy and ...
-
As the broader stock rally broadens to some of the more “boring” corners of the market, it’s the higher-yielding dividend plays that could s...
-
Double your money in a short time. Few investors would walk away from such an opportunity. Of course, there's no guarantee that any inve...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.