Dogs of the Dow Jones originally published on "long-term-investments.blogspot.com". When you read my blog over a longer period, you would get some ideas of stocks you have never heard before. That's because my database includes all stocks of the market and some of them are working in real small niches. Today I like to go back and show you the 10 hottest dogs of the world's most mentioned index, the Dow Jones Index.
I cover the "Dogs of the Dow" strategy in my blog "long-term-investments.blogspot.com" on a regular basis. The philosophy is to buy 10 stocks of the Dow Jones with the highest dividend yield and lowest price to earnings ratio at the beginning of the year and to hold these stocks for a year. After this period, the investor should sell stocks that are no more Dogs of the Dow and buy therefore new Dogs of the Dow. Below is an updated sheet of the 10 best Dogs of the Dow. Such stocks have the lowest expected price to earnings ratio and highest dividend yield within the Dow Jones Index.
Compared to the latest screen from last month, Intel, Microsoft and McDonalds are back in the battle and kicked off JP Morgan Chase, Chevron and Procter&Gamble.
The 10 cheapest stocks of the Dow Jones have an average dividend yield of 3.71 percent as well as a forward P/E ratio of 11.85. The average P/B ratio amounts to 3.36 and P/S ratio is 2.41.
Here is the table with some fundamentals:
Related Stock Ticker Symbols:
T, VZ, INTC, MRK, DD, PFE, MSFT, GE, JNJ, MCD