Dogs Of Dow' Are Tops Source: Dow Jones News (F
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Posted On: 01/04/2016 7:46:36 AM
Dogs Of Dow' Are Tops
Source: Dow Jones News
(FROM THE WALL STREET JOURNAL 1/4/16) By Chelsey Dulaney
The "Dogs of the Dow" bit back in 2015.
After a mixed 2014, one of Wall Street's classic strategies outperformed the S&P 500 and the Dow industrials in 2015.
The dogs strategy, as popularized by money manager Michael O'Higgins in the early 1990s, holds that investors should start the year by purchasing the 10 highest-yielding components of the Dow. The aim is to acquire more dividend income and hope the past year's laggards rebound. Dividend yields rise when stock prices fall, underscoring the core of the Dogs strategy.
The dogs returned 2.6% last year including dividend income, topping the 0.2% increase for all 30 Dow stocks and edging in above the 2.35% increase for the S&P 500, according to market-research firm Bespoke Investment Group.
Last year's Dogs were General Electric Co., McDonald's Corp., Coca-Cola Co., Procter & Gamble Co., Merck & Co., Pfizer Inc., Exxon Mobil Corp., Caterpillar Inc., Chevron Corp., and Verizon Communications Inc..
McDonald's was the best dog performer, returning 30% including dividend income. GE was a close second, returning 28% in 2015. The worst-performing dog stocks were Caterpillar, Chevron and Exxon, which are all being hurt by low oil prices.
This year, Cisco Systems Inc., International Business Machines Corp. and Wal-Mart Stores Inc. will join the dogs, replacing GE, McDonald's and Coke.
(END) Dow Jones Newswires
January 04, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
(FROM THE WALL STREET JOURNAL 1/4/16) By Chelsey Dulaney
The "Dogs of the Dow" bit back in 2015.
After a mixed 2014, one of Wall Street's classic strategies outperformed the S&P 500 and the Dow industrials in 2015.
The dogs strategy, as popularized by money manager Michael O'Higgins in the early 1990s, holds that investors should start the year by purchasing the 10 highest-yielding components of the Dow. The aim is to acquire more dividend income and hope the past year's laggards rebound. Dividend yields rise when stock prices fall, underscoring the core of the Dogs strategy.
The dogs returned 2.6% last year including dividend income, topping the 0.2% increase for all 30 Dow stocks and edging in above the 2.35% increase for the S&P 500, according to market-research firm Bespoke Investment Group.
Last year's Dogs were General Electric Co., McDonald's Corp., Coca-Cola Co., Procter & Gamble Co., Merck & Co., Pfizer Inc., Exxon Mobil Corp., Caterpillar Inc., Chevron Corp., and Verizon Communications Inc..
McDonald's was the best dog performer, returning 30% including dividend income. GE was a close second, returning 28% in 2015. The worst-performing dog stocks were Caterpillar, Chevron and Exxon, which are all being hurt by low oil prices.
This year, Cisco Systems Inc., International Business Machines Corp. and Wal-Mart Stores Inc. will join the dogs, replacing GE, McDonald's and Coke.
(END) Dow Jones Newswires
January 04, 2016 02:47 ET (07:47 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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