1
/
of
1
store-traders-com
Stocks & Commodities V. 31:3 (52-53): Explore Your Options by Tom Gentile
Stocks & Commodities V. 31:3 (52-53): Explore Your Options by Tom Gentile
Regular price
$2.95 USD
Regular price
Sale price
$2.95 USD
Quantity
Couldn't load pickup availability
Explore Your Options by Tom Gentile
AN OPTION TWIST ON DOGS OF THE DOW
Dogs of the Dow is a stockpicking strategy devoted to selecting high-dividend stocks. Over time, the dogs have yielded about 50% more per year on average than simply buying the Dow Jones Industrial Average (DJIA). The last few years, however, the dogs have been mixed. Will this trend continue, or is there safety in buying the dogs in the event that the market will continue to stabilize?
Investing in the dogs is relatively simple. After the stock market closes on the last trading day of the year, of the 30 stocks that make up the DJIA, select the 10 stocks with the highest dividend yield. The strategy involves investing equal dollar amounts in each stock that qualifies as a dog. Then hold these 10 dogs for one year. Repeat annually. It cant get any simpler than that.
The safety is in the dividend yields, and with the market down big again, dividends are higher than normal. There are a few that I like very much for more than this reason. Of the 10 dog stocks, take a look at the cheapest five, which are referred to as the puppies of the Dow, or the Flying Five. They offer a smaller stock price and are considered safer due to stock price. The investment strategy is no different from the 10 dogs. Lets look at the five stocks over the last year (Figures 1 through 4).
AN OPTION TWIST ON DOGS OF THE DOW
Dogs of the Dow is a stockpicking strategy devoted to selecting high-dividend stocks. Over time, the dogs have yielded about 50% more per year on average than simply buying the Dow Jones Industrial Average (DJIA). The last few years, however, the dogs have been mixed. Will this trend continue, or is there safety in buying the dogs in the event that the market will continue to stabilize?
Investing in the dogs is relatively simple. After the stock market closes on the last trading day of the year, of the 30 stocks that make up the DJIA, select the 10 stocks with the highest dividend yield. The strategy involves investing equal dollar amounts in each stock that qualifies as a dog. Then hold these 10 dogs for one year. Repeat annually. It cant get any simpler than that.
The safety is in the dividend yields, and with the market down big again, dividends are higher than normal. There are a few that I like very much for more than this reason. Of the 10 dog stocks, take a look at the cheapest five, which are referred to as the puppies of the Dow, or the Flying Five. They offer a smaller stock price and are considered safer due to stock price. The investment strategy is no different from the 10 dogs. Lets look at the five stocks over the last year (Figures 1 through 4).
Share
