Dogs of the Dow

[winston]

Eliminating the Reasons Your Investments Fail by Alexander Green

In this issue:
Why most investors are doomed to poor returns.
What really makes money for investors.
And one way to safely cash in...

Believe it or not, when it comes to the stock market, most investors prefer glamour to profits.

Why do I say this? Tell the average investor about a company with a cutting-edge technology, an exciting Phase III drug or a new gold strike and they're all ears.

But tell them about a blue-chip stock with steady sales, a big order backlog and a rising dividend yield and they're more likely to stifle a yawn.

That's unfortunate. Because, contrary to what most investors believe, innovation is not always a great predictor of business success. As Andrew Carnegie famously said, "Pioneering don't pay."

Nor is a young company that's just feeling its oats - and retaining all its earnings - likely to be the best long-term investment. It's a well-known fact that four out of five new businesses fail in the first five years.

What really makes money for investors over time - and without the hair-raising volatility of growth stocks - is steady businesses paying stodgy old dividends. Why?

Mark Skousen writes in his book "EconoPower," "Earnings may be suspicious due to creative accounting. Revenues can be booked in one year or several years. Capital assets can be sold and the value listed as ordinary income. But cash paid into your account is a sure thing, a litmus test of the company's true earnings. It's tangible evidence of the firm's profitability."

Regular payouts impose fiscal discipline on a company. And history reveals that dividend-paying stocks are both less risky and more profitable than most stocks.

Dr. Jeremy Siegel, a professor of finance at The Wharton School of the University of Pennsylvania, has done a thorough historical study of various asset classes.

In his book "The Future for Investors" - endorsed by such investment luminaries as Robert Shiller, Peter Bernstein and Barton Biggs - he demonstrates that one of the best keys to success is focusing on tried and true stocks that pay steady, rising dividends.

"The constant pursuit of growth - through buying hot stocks, seeking out the next big thing, or investing in the fastest growing countries - dooms investors to poor returns," says Siegel.

His research shows that high-dividend payers have outperformed the market by a wide margin over the years.

That's the reason for the great popularity of the Dogs of the Dow strategy. You simply buy the 10 highest-yielding Dow stocks and then replace them a year later with a new list. It doesn't produce the best results every year. But this simple strategy has delivered excellent long-term results, beating the broad market handily since 1973.

If you're going to buy individual stocks, do your homework. See how long the company has been paying its dividend. Gauge how secure it is by looking at the company's cash position, sales and expenses (especially debt service).

Trust me, a dividend from a highly leveraged company with declining fortunes and low cash levels will not be maintained. (This is especially true today in the banking and brokerage industries.)

Still, there are a number of attractive dividend payers out there right now. We'll be talking about several of them in the weeks ahead.

In the meantime, conservative investors may want to take a diversified approach by buying a dividend-oriented fund like WisdomTree Total Dividend (NYSE: DTD), currently yielding 5.3%.

[winston]

~ The “Dogs of the Dow”:

This entails buying the 10 Dow stocks with the highest dividends. The strategy became popular in the early 1990s and worked like a charm for several years until Wall Street caught on and created investment trusts.

In addition, the system became so popular that it stopped working. And it almost collapsed in 2008, when several Dow stocks discontinued their dividends entirely (Citigroup, GM and Bank of America).

Investors didn’t know what to do.


Source: Investment U

[winston]

Should You Buy the Dogs of the Dow in 2015?

Buy the 10 highest-yielding Dow Jones stocks and sit on 'em. It's an easy method, but is it a good one?

By Greg Sushinsky

Source: InvestorPlace

http://investorplace.com/2014/12/dogs-o ... #.VKHlKsCA

[winston]

Meet the Preliminary Dogs of the Dow for 2021

by Paul Ausick

Investors buy shares in the 10 Dow stocks yielding highest dividends.

Three stocks (Disney, Boeing and Salesforce) suspended dividends due to the impact of the coronavirus pandemic.

Chevron Corp. (NYSE: CVX): 6.0%
International Business Machines Corp. (NYSE: IBM): 5.3%
Dow Inc. (NYSE: DOW): 5.1%
Walgreens Boots Alliance Inc. (NASDAQ: WBA): 4.6%
Verizon Communications Inc. (NYSE: VZ): 4.2%
3M Company (NYSE: MMM): 3.4%
Merck & Co. Inc. (NYSE: MRK): 3.3%
Cisco Systems Inc. (NASDAQ: CSCO): 3.2%
Coca-Cola Co. Inc. (NYSE: KO): 3.1%
Amgen Inc. (NASDAQ: AMGN): 3.1%

Source: 24/7 Wall St

https://247wallst.com/investing/2020/12 ... -for-2021/

[winston]

7 Dogs of the Dow for 2021

By Joel Baglole

Chevron (NYSE:CVX)
IBM (NYSE:IBM)
Walgreens (NASDAQ:WBA)
Verizon (NYSE:VZ)
3M (NYSE:MMM)
Cisco Systems (NASDAQ:CSCO)
Coca-Cola (NYSE:KO)

Source: Investor Place

https://investorplace.com/2021/01/7-dog ... 6OJc9o/h4=

[winston]

Meet the 2024 Dogs of the Dow

by Dan Caplinger

Source: The Motley Fool

https://finance.yahoo.com/news/meet-202 ... 00709.html