One of the top year-end strategies to consider is the Dogs of the Dow.
Not only does the strategy allow you to potentially profit from down and out Dow stocks, it allows you to collect respectable dividends, too.
Over the last six years, here’s how the Dogs did compared to the Dow Jones.
Plus, consider this.
“Coming into 2020, $10,000 invested in the Dogs at the beginning of the decade would have turned into about $40,100. For the overall Dow industrials, $10,000 would have become about $35,500. With 2020 returns added in, the Dow has the edge on the Dogs, at about $38,400 to $37,400,” as noted by Barron’s.
Even more attractive are the dividends. For an idea, here’s how the Dogs of the Dow have performed since January 2021.
While we’re not sure of the 2022 Dogs of the Dow just yet, the strategy is easy. Investors simply invest an equal amount among all 10 Dogs of the Dow at the start of the year, collect dividends throughout the year, close the positions by year end – and repeat.
The summer season unofficially begins with the extended weekend. Markets are closed on Monday in observance of Memorial Day. We typically see reduced trading volumes before a holiday, and we could see the markets float higher on lighter volume today. Adjust your positions as needed.
Ok, most fear is irrational, but right now it’s causing markets to sell off, even while stocks are on sale compared to forward earnings multiples. Sure, we have some hurdles ahead, but Traders Reserve is here to help guide you through so you can spend less time watching the markets and more time doing things you love.
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.