Buy 2 August Dogs Of The Dow, Watch 5

Aug. 08, 2023 7:23 PM ET, , , , , , , , , , , , , , , , , , ,

Summary

  • "The Dow® [adds a stock] if the company has an excellent reputation, demonstrates sustained growth, and is of interest to a large number of investors. Sector representation is also a consideration.”–Dow Jones & Co.
  • The highest-yield 10 stocks are August’s Dogs of the Dow: CSCO, KO, GS, AMGN, CVX, IBM, DOW, MMM, WBA, and VZ, averaged a 4.63% annual yield.
  • Thirty Dow stocks represent nine of eleven sectors. Dow Jones tracks utilities as a separate index and omits real estate. Broker top-ten target-estimated August net-gains ranged 15.75%-33.3%, topped by VZ 8/4/23.
  • Dow Industrial Index top-ten firms by broker target-price upside, V, TRV, KO, CVX, HON, MRK, NKE, MSFT, VZ, and DIS, averaged 18.77%.
  • Analyst one-year targets showed ten highest-yield Dow stocks producing 36.14% more gain from $5k invested in the lowest-priced five than from the same investment in all ten. Lower-priced (“little” Dow dogs) now lead by over three and one-half lengths into August.
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Foreword

While two thirds of this collection of Dow Industrials (DJI) is too pricey and reveals only skinny dividends, two of the five lowest-priced Dogs of the Dow are ready to buy. This month, Verizon Communications Inc (

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This article was written by

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Fredrik Arnold is a retired quality service analyst sharing investment ideas with a primary focus on dividend yields by utilizing free cash flow and one-year total returns as trading indicators.

He is the leader of the investing group The Dividend Dog Catcher, where he shares a minimum of one new dividend stock idea per week with focus on yield or extraordinary financial circumstances. All ideas are archived and available after weekly announcement. Learn more.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of CSCO, INTC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same. Graphs and charts were compiled by Rydlun & Co., LLC from data derived from Indexarb; YCharts; finance.yahoo.com; analyst mean target price by YCharts. Open source dog art from dividenddogcatcher.com.

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