Dogs of the Dow
Otherwise called the Dow Dividend theory. An investing strategy that involves rating Dow stocks by dividend yield from highest to most reduced toward the beginning of every year and afterward buying equivalent dollar measures of the main 10.
Every year, dividend yields are recalculated, new stocks in the best 10 are added and ones that don't take care of business any longer are sold. Somewhat nutty, yet since it was first figured out in the book Beating the Dow back in 1972, its made investors enough money that the "dogs of the Dow" theory puts buying and selling pressure on stocks toward the beginning of every year.
Features
- The strategy's history shows that it beat the index during the 10-year stretch that followed the financial crisis.
- The strategy endeavors to amplify the yield of investments by buying the highest-delivering dividend stocks accessible from the DJIA every year.
- The Dogs of the Dow is a notable strategy previously distributed in 1991.