The Dogs of the Dow is an approach many have used over the years to take advantage of companies in the Dow that have underperformed in the previous year. The Dow is ranked at the end of the year by Dividend yield from highest to lowest. The top ten are then chosen as the Dogs of the Dow.. Last years "dogs' outperformed the Dow on a percentage basis.
I decided to put together a spreadsheet to track the performance of this years Dogs.. Here is a snap shot of the first trading day of 2014.
It will be interesting to see just how they do during the year , Note the yield on the portfolio is a nifty 3.44% , its nice to get paid while u wait...
This portfolio makes for a great 'starter' , for those that have missed the recent run in the market.. Simple , no brain approach to the market , while providing a nice yield..
I'll check back from time to time to see just how this approach is doing....
Disclosure: I am long CSCO, T, CVX, INTC, MRK.
Additional disclosure: I am long numerous equity positions , they can be seen here in this blog..