2024-02-07 08:00:00 ET
Summary
- The Dogs of the Dow is a simplistic investment strategy that picks the 10 stocks from the Dow with the highest dividend yield each year.
- It's a flawed methodology, and I'll show that the list includes great buys and stocks to avoid like the plague.
- I focus on Verizon and 3M in this article.
Written by Sam Kovacs
Introduction
I always thought the Dogs of the Dow, to be an overly simplistic investment strategy which missed more than it captured. Simply picking the 10 stocks from the Dow with the highest dividend yield each year seems to be a bit of a stretch.
It is an extremely crude implementation of the "value" factor, which should be distinguished from value investing.
Value investing and the value factor both aim to capitalize on undervalued stocks, but they approach this goal differently....
Read the full article on Seeking Alpha
For further details see:
Verizon Vs. 3M: Buy This Dog And Sell That One (Possible Dividend Cut)