I’ve been a dog catcher for years since 2005. I bought ten stocks from the Dow 30 Index under the strict guidelines and tutelage of the strategists at www.dogsofthedow.com.
To quote my mentors:
“Dogs of the Dow is a stock picking strategy devoted to selecting the highest dividend paying Dow stocks.
Investing in the Dogs of the Dow is relatively simple. After the stock market closes on the last day of the year, of the 30 stocks that make up the Dow Jones Industrial Average, select the ten stocks which have the highest dividend yield. Then simply get in touch with your broker and invest an equal dollar amount in each of these ten high yield stocks. Then hold these ten “Dogs of the Dow” for one year. Repeat these steps each and every year. That’s it! t’s Free!”
The key words describing my intended investing style were contained in the quote above:
one per year
My on-line tutors even described a more simple strategy that made more money than the ten dog trick:
“Of these ten Dogs simply select the five Dogs with the lowest stock price and you will have what we call the Small Dogs of the Dow (Sometimes referred to as the Puppies of the Dow or the Flying Five). Then get in touch with your broker and invest an equal dollar amount in each of these 5 high yielding, low priced stocks. Then hold these five “Small Dogs of the Dow” for one year. Investing in the Puppies of the Dow would have resulted in a 20.9% average annual return since 1973! (As reported in U.S. News & World Report, July 8, 1996)”
However, as with all good prescriptions, there are side effects. So the dogs of the dow forewarned and forearmed subscribers:
We here at the Dogs of the Dow take no responsibility for the performance of this high dividend yield investment technique. We are simply presenting this technique since it has historically outperformed the stock market as measured by the Dow Jones Industrial Average.
An important side note: Within the past 20 years there have been periods in which this investment technique has under performed the Dow as a whole. An investor should be aware that this is a long term investment strategy and no one should expect the Dogs to outperform the Dow each and every year.