What Does Dogs Of The Dow Mean? An investingstrategy that consists of buying theTenDJIA stocks
with the highest dividend yield at the beginning of the year. The portfolio should be adjusted a the beginning of each year to include the 10 highest yielding stocks.
Investopedia explains Dogs Of The Dow: The strategy was formulated in 1972 and has proven to be successful. In fact, as Dog of the Dow investors readjust their portfolios each year, it places pressure on the stocks involved.
For the sake of breadth we are going to feature [15 ] Stocks. Under eachDOTDchart are the % Dividend Yield & Price Target formulated, effective beginning January 3rd 2012. [small dog= the lowest priced ( 8) stocks ] [Big Dog ]= the (7) highest priced stocks ] The mvg-avg's displayed are10 & 50 & 100 day. iHubquotepage below each chart.
ADividendis a payment to shareholders. A dividend payment can be in the form of cash, stock, or property. All dividends must be declared by the board of directors and are usually paid out on aquarterlybasis. Or, as they may wish! Mature, well established, blue chip companies tend to pay dividends as it gives investors an incentive to own their stock. Small, rapidly growing companies tend not to pay dividends as any profits are reinvested within the company in hopes of maintaining a rapid pace of growth. The top 5 yielders are referred to as the "Flying Five".
Dividend yieldis equal to the annual dividend per share divided by the stock price. For example, if the price of a stock is $20 per share and that particular company has an annual dividend of $1, then the dividend yield would be $1 / $20 or 5%.
