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Portfolio #1 - Dogs of the Dow

|Includes:Caterpillar Inc. (CAT), CVX, DD, HD, JNJ, MCD, MRK, PFE, VZ

 Introduction

DOW dividend investment strategy may be attractive to the fact that carry it out do not give a lot of time and the results can be startling. At least historically, the strategy returns about twice the annual average market rates. The strategy is based on the same world-known Dow Jones Industrial Average (DJIA) index. It consists of 29 large, multi-sector companies. Therefore, for a beginner investor, these stocks may be a good starting point for individual investments. Using this strategy, you will learn useful things needed for further investment in your business.
Initially, we create a list of all the shares with the price and dividend yield (div yield - the annual dividend divided by share price. Expressed as a percentage).
The shares sorted by div/yield. All information about Dow Jones stocks, prices and div/yields you can find here:
For example:
 
There are three main strategies of variation.
 
The first is called "Dogs of the Dow“
The portfolio #1 created in September 29, 2009.
This means, we take 10 shares with the best yields:
 
 
 
 
 
  1. Verizon Communications Inc.- VZ



  2. AT&T Inc. - T




  3. E.I. du Pont de Nemours & Company  - DD





  4. Merck & Co., Inc. - MRK




  5. Pfizer Inc. - PFE





  6. McDonald's Corporation - MCD





  7. Chevron Corporation - CVX





  8. The Home Depot, Inc. - HD




  9. Caterpillar Inc. - CAT





  10. Johnson & Johnson - JNJ




There is our portfolio #1. Hold it about a one year or new div/yield of companies will be clear. If someone from the shares held outside the new top 10, then they are sold and replaced by new shares. The method is really very simple, does not require much work.
All dividends reinvested.


After January 1st 2010 portfolio revision the components are:

  1. AT&T Inc T:NYQ
  2. Verizon Communications VZ:NYQ 
  3. E I du Pont de Nemours and Co DD:NYQ
  4. Merck & Co Inc MRK:NYQ
  5. Pfizer Inc PFE:NYQ
  6. Chevron Corp CVX:NYQ
  7. McDonald's Corporation MCD:NYQ
  8. Home Depot Inc HD:NYQ
  9. The Boeing Co BA:NYQ
  10. Johnson and Johnson JNJ:NYQ
 
Performance since the beginning of the portfolio:
Dogs of the Dow – 15.68%;
Dow Jones – 9.57%;
S&P500 – 6.15%.


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Stocks: CAT, CVX, DD, HD, JNJ, MCD, MRK, PFE, VZ