Knowledge of Stock :Dogs of the Dow
This is a very simple strategy in which you find out which ten of the Dow Jones Industrial companies currently have the highest dividend yield and then you purchase those stocks . These stocks are called the “dogs” of the Dow because they tend to have lower prices than the other Dow components, which means that they could experience substantial price increases in the next year. If you decide to use this strategy, it’s important for you to remember to reallocate your portfolio every year, since the dogs will change over time. Historically this approach has been successful, but there’s no compelling reason to believe it will continue to be.
Posted: June 22nd, 2010 under Knowledge of Stock, Stock of Knowledge.
Tags: Dogs of the Dow, Knowledge of Stock, Stock of Knowledge, Stock Strategies