Tag - Dogs of the Dow

Advice to the Advisors

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Different Takes on “Dogs of the Dow”—Part Two

The long-time appeal of the “Dogs of the Dow” concept, Gordon Scott of investopedia.com postulates, is that “it presents a straightforward formula approach.” Out of the 30 stocks that make up the Dow Jones Industrial Average, investors, at the start of each year, select those ten with the highest dividend yield. Based on the principle that the dividend payout can be used as a measure of the average worth of the company, a high yield is seen as signaling [...]

Advice to the Advisors

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Different Takes on “Dogs of the Dow”—Part One

While some analysts may write off the nearly thirty-year-old “Dogs of the Dow” theory as antiquated, Ian Cooper of chasingmarkets.com disagrees. “Plus,” Cooper adds, “we have to remember that each of the Dogs also pays a healthy dividend.” Antiquated or not, “Dogs of the Dow” is hardly new to investor vocabulary. The concept—out of the 30 stocks that make up the Dow Jones Industrial Average, the strategy involves choosing the ten with the highest dividend yield. The premise, as Investopedia explains, [...]