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Dogs of the Dow |
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Dogs of the Dow The 10 stocks of the 30 on the Dow Jones Industrial Average with the most depressed prices and consequently the highest yields. The investor buying these stocks speculates that they will bounce back over a one-year period.
Dogs of the Dow 1. The 10 stocks (of 30) on the Dow Jones Industrial Average with the lowest prices and consequently the highest yields. 2. An investment strategy in which one buys the dogs of the Dow on the first of the calendar year and sell them exactly one year later. Theoretically, the extra risk involved in this strategy gives an investor a higher return than buying all 30 stocks on the DJIA. Dogs of the Dow. If you follow a Dogs of the Dow investment strategy, you buy the ten highest-yielding stocks in the Dow Jones Industrial Average (DJIA) on the first of the year and hold them for a year. According to this theory, the dogs will, over the year, produce a total return, or combination of dividends plus price appreciation, that's higher than the return on the DJIA as a whole. The increasing price is the result of demand for the high-yielding stock. On the anniversary of your purchase, the stocks are no longer dogs because their higher prices reduce their current yield even if the dividend remains the same. So you sell them and buy the next batch of dogs. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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The new Pigs of the Dow strategy is an offshoot of the Dogs of the Dow. A variation of the Dogs of the Dow that has produced even stronger results is the Low Five or the Flying Five Strategy. com wrote: "One way to approach the Dogs of the Dow is to find the stocks that are in keeping with the spirit of the strategy, those Blue Chips that are out of favor and |
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