The Dogs Of The Dow Investment Strategy

What would you say about an average annual return of 17.7% for the last 45 years? I don’t know about you, but I would say GREAT !!! This would have been the return on your money, if you invested using the Dogs Of The Dow trading strategy. It’s absolutely great return, especially because the overall average annual yield of the Dow Jones Index was 11.8% for the very same period. Not only would you have beaten the market, but also you would have made a fortune. On the pictures below, you can see the growth of an investment of only $1000 dollars for 45 years at the rate of 17.7 % Yes, a thousand would have reached 1 530 878 US dollars! Try to calculate it yourself with our compounding interest calculator here and also try what would have happened, if you added to your investment 500 dollars every year J. Believe it or not, this would have grown to nearly 6 000 000 dollars. If you think this is not amazing, you should reconsider it may be…!

The Strategy

The dogs of the Dow Strategy

The dogs of the Dow

The Dogs Of The Dow strategy is an easy way to achieve these results yourself. It’s extremely simple and extremely powerful in the same time, here is what it is:

  1. On the last day of the year, after the market closes determine which are the 10 stocks of the 30 in the Dow Jones Index, that had the highest dividend yield.
  2. Divide the money you wish to invest into 10 equal parts, and invest each part in each of the stocks you selected on the first step.
  3. Enjoy your life and at the end of the year repeat the steps – find the stocks in the Dow Index paying the highest in dividends and restructure your investment, if needed. Hold another year and so on…

YEAH…! It’s that simple! And it has been really profitable so far. You don’t need to work, no efforts are needed, no special knowledge… All you need is a phone call to your broker and patience!

Some Things You Should Consider About The Strategy

* This is a long term investment, and you will save some taxes, if you are in the US.

* Try to minimize the transaction and ownership costs, by selecting the right stock broker for your investment.

* Since 1973, there have been years in which The Dow Jones Index outperformed “The Dogs Of The Dow”. You should know that this strategy is a long term investment and don’t expect to have the exact 17.7 % every year! There will be ups and downs, but in the long run, the results should be great!


InVeStOr

I just love investing... It's a passion of mine and this is how I ended up building this site. I hope I am able to add some really cool investing stuff here.

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