Investor Glossary-dogs of the dowInvestor Glossary-dogs of the dowInvestor Glossary-dogs of the dowInvestor Glossary-dogs of the dowInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Dogs Of The Dow

The HTML to link to this page
 

Dogs of the Dow is a popular investment strategy. The basic approach of Dogs of the Dow is to select ten of the 30 Dow Jones Industrial Average (DJIA) stocks that have the highest dividend yield. These are "Dogs of the Dow" because the relatively high dividend yield is suggestive of a company that is being shunned by investors. You invest an equal amount in each of these Dogs of the Dow. You hold the shares for one year and then repeat the same steps. Some Dogs of the Dow will remain part of your portfolio, while other Dogs of the Dow will no longer have the highest yields and be replaced by worse performers. The logic behind the Dogs of the Dow is that most if not all the bad news is already out and priced in the stock. The relatively high dividend payments that the Dogs of the Dow provide add significantly to total return. Dogs of the Dow are large blue chip companies that have significant resources (i.e. quality management) which increases the probability of a turnaround.



Rate this Dogs of the Dow definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use