"Dogs of the Dow" is the name given to one of the simplest dividend strategies for beating the market. Over the coming year, I'll track the Dogs' performance and keep you abreast of news affecting these companies.
The strategy
The Dogs is an investing strategy that buys and holds equal dollar amounts of the 10 best-yielding dividend stocks of the Dow Jones Industrial Average (DJINDICES: ^DJI ) . The strategy banks on the idea that blue-chip stocks with high yields are near the bottom of their business cycle and should do much better going forward. Investors in the strategy then would not only get large dividends but also gains in the stocks underlying those dividends.
High-yield dividends
High-yield portfolios are often dismissed as inferior to their growth counterparts for various reasons:
Evidence compiled by Tweedy Browne refutes these falsehoods. Research shows that portfolios of high-yield dividend stocks outperform lower-yielding portfolios and the market in general. In fact, a study by noted finance professor Jeremy Siegel found that over 45 years, the highest-yielding 20% of S&P 500 stocks outperformed the S&P 500 by three times! The highest-yielding stocks turned a $1,000 investment in 1957 into $462,750 by 2002, compared with $130,768 if the same money was invested in the index.
Best Stocks To Buy: Golfsmith International Holdings Inc.(GOLF)
Golfsmith International Holdings, Inc. operates as a specialty retailer of golf and tennis equipment, apparel, footwear, and accessories. Its stores offer branded clubs, balls, apparel, and accessories, as well as its proprietary-branded products, including Clubmaker, Golfsmith, Killer Bee, J.G.Hickory, Lynx, Profinity, Snake Eyes, TourTrek, XPC, Zevo, Maggie Lane, ZTech, and MacGregor. The company?s stores also provide club components, clubmaking tools, supplies and on-site clubmaking, custom club-fitting, and club repair services; and hitting areas, putting greens, ball-launch monitor technology, and club demos. In addition, its stores offer golf and tennis lessons, tennis equipment, and tennis racquet maintenance and repair services, as well as partial-flight indoor driving ranges. Further, the company develops and promotes proprietary merchandise, including clubs, club components, apparel, golf bags and covers, pull and push carts, shoes, furnishings, accessories, tra ining aids, and gifts. As of January 25, 2012, it operated 79 stores in the United States. Golfsmith International Holdings also offers its products through catalog and Internet sales. The company was founded in 1967 and is headquartered in Austin, Texas.
Best Stocks To Buy: Hudson Highland Group Inc.(HHGP)
Hudson Highland Group, Inc. provides specialized professional-level recruitment and related talent solutions worldwide. The company provides permanent recruitment services; and contract consulting services, including project management, interim management, and professional contract staffing services. It also offers legal eDiscovery services, such as eDiscovery solutions, which provide information management solutions for transaction and regulatory actions; managed document review comprising logistical deployment, project management, process design and productivity management; and contract attorney staffing services. In addition, the company provides recruitment process outsourcing services, which include complete recruitment outsourcing, project-based outsourcing, contingent workforce solutions, and recruitment consulting; and talent management services, such as talent assessment, interview training, executive coaching, employee development, and outplacement. It serves sma ll to large-sized corporations and government agencies in the Americas, the Asia Pacific, and Europe. The company was founded in 2003 and is based in New York, New York.
Top Companies To Buy For 2014: Paragon Group(PAG.L)
The Paragon Group of Companies PLC, through its subsidiaries, engages in first mortgage and consumer finance businesses in the United Kingdom. The company?s services include buy-to-let and owner-occupied mortgage assets; asset investment and administration; vehicle fleet management; unsecured lending; property services; mortgage brokering; loan and vehicle finance; and surveyors and property consulting. It also offers a range of services to its landlord customers, including tenant assessments, insurance products, and energy performance certificates. In addition, the company provides consumer finance and specialist loan servicing for non-performing assets, litigation, and surveying services for third party clients comprising the management of portfolios and the provision of arrears management. Its clients include building societies, investment banks, specialist lenders, hedge funds, private equity houses, commercial banks, and other financial services companies. The Parago n Group of Companies PLC was founded in 1985 and is headquartered in Solihull, the United Kingdom.
Best Stocks To Buy: Circa Enterprises Inc (CTO.V)
Circa Enterprises Inc. engages in the design, manufacture, marketing, and sale of surge protection and related telecommunications products primarily in the United States and Canada. The company�s surge protection products provide primary protection to telephone systems and data transmission equipment against voltage surges. It offers indoor and outdoor building entrance terminals, central office connectors, surge protection modules, station protectors, station protection enclosures, and 5 pin protector modules; and custom original equipment manufacturer products for the telecommunications sector, including rack mount protectors, test cords, and panels primarily for large outdoor cabinets. The company is also involved in the precision metal fabrication business; and designs, manufactures, markets, and sells pole line hardware, mining hardware, transmission hardware, anchors, bolts, washers, transformer hardware, arrestor brackets, insulators, forgings, meter sockets, enclo sures, and industrial bus duct and generator switches, as well as grounding, distribution, and communication hardware to the electrical industry. It sells its products directly, as well as through distributor networks. The company was founded in 1985 and is headquartered in Calgary, Canada.
Best Stocks To Buy: Geron Corporation (GERN)
Geron Corporation, a biopharmaceutical company, develops therapies for cancer. Its clinical development product candidates include Imetelstat, a telomerase inhibitor, which is in Phase II clinical trials for the treatment of metastatic breast cancer, advanced non-small cell lung cancer, thrombocythemia, and myeloma. The company was founded in 1990 and is based in Menlo Park, California.
Advisors' Opinion:- [By Keith Speights]
Anticipation elevation
MLV and Company initiated coverage on Geron Corporation (NASDAQ: GERN ) this week. The investment firm's "buy" recommendation helped spark shares to jump a whopping 39%.
Best Stocks To Buy: China Biologic Products Inc.(CBPO)
China Biologic Products, Inc., a biopharmaceutical company, through its subsidiaries, engages in the research, development, manufacture, and sale of human plasma-based biopharmaceutical products to hospitals and inoculation centers in the People?s Republic of China. It offers Human Albumin for the treatment of shock caused by blood loss trauma or burn; raised intracranial pressure caused by hydrocephalus or trauma; oedema or ascites caused by hepatocirrhosis and nephropathy; and neonatal hyperbilirubinemia, as well as for the prevention and treatment of low-density-lipoproteinemia. The company also offers Human Hepatitis B Immunoglobulin for the prevention of measles and contagious hepatitis; Human Immunoglobulin and Human Immunoglobulin for Intravenous Injection products for original immunoglobulin deficiency, secondary immunoglobulin deficiency, and auto-immune deficiency diseases; and Thymopolypeptides Injection that is used in the treatment of various original and sec ondary T-cell deficiency syndromes, auto-immune deficiency diseases, and a range of cell immunity deficiency diseases, as well as assists in the treatment for tumors. In addition, it provides Human Rabies Immunoglobulin primarily for passive immunity from bites or claws by rabies or other infected animals; Human Tetanus Immunoglobulin for the prevention and therapy of tetanus; and Placenta Polypeptide that is used for the treatment of cell immunity deficiency diseases, viral infection, and leucopenia caused by various reasons, as well as assists in postoperative heating. The company?s products under development comprise Human Prothrombin Complex Concentrate; Human Coagulation Factor VIII; Human Hepatitis B Immunoglobulin (PH4) for Intravenous Injection; Human Fibrinogen; Varicella Hyperimmune Globulins; and Human Immunoglobulin for Intravenous Injection. The company is based in Beijing, the People's Republic of China.
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