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Fear & Greed Trader
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INDEPENDENT Financial Advisor / Professional Investor- with over 30 years of navigating the Stock market's "fear and greed" cycles that challenge the average investor. Investment strategies that combine Theory, Practice and Experience to produce Portfolios focused on achieving positive... More
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  • Dogs Of The Dow 2014 10 comments
    Jan 2, 2014 4:18 PM | about stocks: CSCO, CVX, DD, INTC, MCD, MRK, MSFT, PFE, T, VZ

    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.

    (click to enlarge)

    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..

    Themes: Dow Dogs Stocks: CSCO, CVX, DD, INTC, MCD, MRK, MSFT, PFE, T, VZ
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Comments (10)
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  • Interesting Times
    , contributor
    Comments (10139) | Send Message
     
    Is there an ETF just for the dogs??
    2 Jan, 06:31 PM Reply Like
  • thenoffya
    , contributor
    Comments (122) | Send Message
     
    SDOG is the top five highest yielding companies in each of ten sectors of the S&P 500, so its a similar approach with relatively large companies. But it is not the Dow 30
    2 Jan, 07:20 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4529) | Send Message
     
    Author’s reply » thenoffya

     

    thanks for the info ...
    2 Jan, 08:09 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4529) | Send Message
     
    Author’s reply » IT,

     

    Nope , u have to make the individual selections and go from there ..
    2 Jan, 06:37 PM Reply Like
  • Interesting Times
    , contributor
    Comments (10139) | Send Message
     
    Huh, you would think someone would have established an ETF if it was a smart move to invest in them..
    2 Jan, 06:45 PM Reply Like
  • Augie91
    , contributor
    Comments (236) | Send Message
     
    T !!!

     

    That's the Dawg fer me :)
    2 Jan, 08:29 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4529) | Send Message
     
    Author’s reply » Augie,

     

    I'm going for CSCO..

     

    Good Luck !!
    2 Jan, 08:31 PM Reply Like
  • Interesting Times
    , contributor
    Comments (10139) | Send Message
     
    FEAR

     

    So is the idea to buy them in January and then sell them in December?

     

    Because i guess the next year you have a new list. Do you know if this plan has worked well over the years? Might be a great strategy.
    2 Jan, 09:25 PM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4529) | Send Message
     
    Author’s reply » IT,
    yes the strategy is to buy on Jan 1 then sell at end of year and replace with the new list.. The strategy had a good track record over the years , then fell off a bit , it did outperform the averages last year.. One nice thing though,, while u may not hit any homeruns here, its solid div yield and div growth makes for nice stable returns ..

     

    Good luck !
    3 Jan, 08:48 AM Reply Like
  • User 7415181
    , contributor
    Comments (562) | Send Message
     
    IT,

     

    Hopefully this link will work:

     

    http://bit.ly/1kfHG2D

     

    Been a while since I checked it out, but I believe the strategy underperformed over the last ten years. I suspect a big part of it underperforming is the DOW 30 got reorganized during the crisis.

     

    I think Fannie Mae and Bank of America and GM used to be on the index in that time period, so there's a possibility you could have been stuck in some awful companies for a year and then when they were removed from the index, you would have to sell for big old losses.

     

    But you could say the same thing about any stock strategy in that time period.

     

    It does appear to work quite well over long periods of time and takes about thirty minutes a year to do it.

     

    I'm going to shut up as I'm an amateur and this isn't even my blog.
    3 Jan, 08:41 AM Reply Like
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