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Dogs of the Dow - Follow Up

The Incredible Power of Dividends and the Chaikin Power Gauge Rating

Highest Dividend Payers in DJIA which had Bullish PGR Still Up on Year!

On January 10, 2011 I posted a blog on Seeking Alpha entitled:

Banking on Large Cap Dividend Stocks: Five ‘Dogs of the Dow’ Worth Betting On

The Dow Jones Industrial Average was 11,637. Today it stands at 10,720.

We looked at the 10 Dow stocks with the highest dividend yields – a strategy referred to as the Dogs of the Dow, popularized by Michael O’Higgins in 1991.

We analyzed those ten stocks and found that 5 had a bullish Chaikin Power Gauge rating, whereas 5 did not. Since the Chaikin Power Gauge rating tells us the probability of a stock outperforming or underperforming the market over the ensuing 3 – 6 months we suggested buying the 5 with bullish PGR ratings as a more proactive way to invest in the Dogs of the Dow.

The results of the PGR selections for the first 7 months of 2011 are spectacular to say the least.

While the Dow is down -7.9% through yesterday’s close the 5 stocks in the Dogs of the Dow with a bullish Chaikin Power Gauge rating on January 10, 2011 are up +0.52%.

That’s right up, even after this current market implosion.

These 5 stocks are: AT&T, Chevron, Intel, McDonalds and Verizon.

The 5 stocks in the Dogs of the Dow which did not have a bullish Chaikin Power Gauge rating are down less than the DJIA at -6.66%.

These 5 stocks are: Dupont, Johnson & Johnson, Kraft, Merck and Pfizer.

Tomorrow I’ll have a list of 5 high yielding stocks with bullish Chaikin Power Gauge ratings which can be bought now.

For now be sure to check the Power Gauge Rating on your stocks on our iPhone app or our desktop widget. Over time, eliminating the stocks from your portfolio with a bearish Chaikin Power Gauge rating will improve your investment results.

To get a free Power Gauge Research report on any stock in your portfolio, go to: