Nojus'  Instablog

Send Message
My company:
Investing Ideas
My blog:
Investing Ideas
  • Portfolio #1 - Dogs of the Dow 2 comments
    Aug 2, 2010 6:38 PM | about stocks: CAT, CVX, DD, HD, JNJ, MCD, MRK, PFE, VZ


    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%.

    Read More

    Stocks: CAT, CVX, DD, HD, JNJ, MCD, MRK, PFE, VZ
Back To Nojus' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (2)
Track new comments
  • DailyTape
    , contributor
    Comments (3) | Send Message
    Good insight and information. Thanks for the follow.
    4 Aug 2010, 10:53 AM Reply Like
  • Nojus
    , contributor
    Comments (29) | Send Message
    Author’s reply » Welcome, DailyTape!
    5 Aug 2010, 08:26 AM Reply Like
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.