Seeking Alpha

Dogs of the Dow outperformed in 2013

  • The out-of-favor Dogs of the Dow strategy regained some bite this year, up 30% (excluding dividends) to outpace the Dow 30 by 400 basis points.
  • The strategy worked well for years until its popularity in the 90s assured it of working well no more - cumulatively from 2001-2010, the Dogs trailed the broader Dow.
  • Dow ETFs: DIA, DOG, DXD, UDOW, SDOW, DDM
  • The Dow Jones High Yield Select 10 ETN (DOD) attempts to follow the Dogs strategy adjusting the portfolio at year's end to reflect the new dogs.
  • Not Dow related, but Dog Theory related are the ALPS Sector Dividend Dogs - SDOG, IDOG.
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Comments (2)
  • Zeus2012
    , contributor
    Comments (711) | Send Message
     
    It's being skewed by the results of $HPQ which, ironically, got kicked out of DOW.
    30 Dec 2013, 01:05 PM Reply Like
  • Anonymous 2
    , contributor
    Comments (367) | Send Message
     
    I note that when comparing DOD to both the $INDU and the $SPX using StockCharts, DOD outperforms both indexes over one, two and three years.
    Question since DOD is an ETN and does not payout dividends, to what extent are such comparisons valid - to what extent can DOD compare with the indexes unless the Stock Charts show the return of all dividend paying companies assuming reinvestment of dividends.
    Are there charts which show assumed dividend reinvestment over the various time periods as well as just showing the price change. ?
    I realize this is pretty basic - but ...
    30 Dec 2013, 01:45 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
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