Business
Enjoying the Ride: Dog Days of Summer
Published
3 years agoon
Posted By
AdminBy Scott Brown EBS CONTRIBUTOR
It’ is hard to believe that another summer has almost passed us by. Unfortunately, in southwest Montana, the realization that we are in the midst of the “Dog Days of Summer” is signaled by smoke in the sky from the numerous forest fires still burning in the Pacific Northwest, cooling temps and the abrupt end to our watersport activities. On the bright side, hunting season is just beginning and fishing season is still in full swing! On top of that, skiing and snowmobiling seasons are just around the corner.
With that in mind, I thought it would be an opportune time to share the basics of a proven long-term equity market investment strategy known as the “Dogs of the Dow.” Because the Dow Jones Industrial Average is one of the oldest and most widely followed indexes in the world and generally considered a barometer for the broader equity markets, it is not uncommon for market strategists to base investing techniques on some components of the DJIA.
The Dogs of the Dow is a well-known investment strategy first published in 1991. The methodology attempts to beat or at least keep pace with the performance of the DJIA. Determining the Dogs of the Dow for each new year is easy: Simply rank the DJIA 30 stocks by dividend yield and take the top 10 yielding stocks. The strategy has investors buy equal amounts of all 10 stocks at the beginning of the year and then hold them through the end of the calendar year. Then the following year, if the yields have changed, you sell the stocks that have dropped out and buy the new qualifying stocks, thereby rebalancing your positions to the 10 new highest yielding DJIA stocks. It is important to recognize that all 10 will not likely change from year -to year.
It’s noteworthy that this strategy beat the DJIA index during the 10-year stretch that followed the 2008 financial crisis known as The Great Recession. Dogs of the Dow relies on the premise that blue-chip companies do not alter their dividend to reflect trading conditions and, therefore, the dividend is a measure of the average worth of the company. In contrast, the stock price does fluctuate throughout the business cycle.
This should mean that companies with a high dividend relative to stock price are near the bottom of their business cycle, so their stock price likely would increase faster than companies with low dividend yields. In this scenario, an investor reinvesting in high-dividend-yielding companies annually could outperform the overall market.
There are many ways to purchase these securities. You can hand-pick individual stocks and build your own portfolio; invest directly in the Dow through exchange-traded funds; or instead of investing in the entire Dow, you can follow the Dogs of the Dow strategy, whose stocks offer better yields than the Dow as a whole. Oftentimes, the Dogs have been able to outperform the Dow over the course of the year. So I guess even when you’re in the dog house you can still find ways to Enjoy the Ride!
The 2021 Dogs of the Dow are listed below.
The 2021 Dogs of the Dow | |||
Ticker | Company | Dividend Yield | |
1 | AMGN | Amgen Inc. | 3.06% |
2 | CSCO | Cisco Systems | 3.22% |
3 | CVX | Chevron Corp. | 6.11% |
4 | DOW | Dow Inc. | 5.05% |
5 | IBM | IBM | 5.18% |
6 | KO | The Coca-Cola Co. | 2.99% |
7 | MMM | 3M Co. | 3.36% |
8 | MRK | Merck & Co. | 3.18% |
9 | VZ | Verizon | 4.27% |
10 | WBA | Walgreens Boots | 4.69% |
Upcoming Events
march, 2024
Event Type :
All
All
Arts
Education
Music
Other
Sports
Event Details
Children turning 5 on or before 9/10/2024:
more
Event Details
Children turning 5 on or before
9/10/2024: Kindergarten
enrollment for the 2024-2025 school year can be completed by following the
registration process now.
Children
born on or after September 11, 2019: 4K enrollment is now open for
families that have a 4-year-old they would like to enroll in our program for
the 2023-2024 school year. Please complete the 4K Interest Form to
express your interest. Completing this form does not guarantee enrollment into
the 4K program. Enrollment is capped at twenty 4-year-olds currently
residing within Big Sky School District boundary full time and will be
determined by birth date in calendar order of those born on or after September
11, 2018. Interest form closes on May 30th.
Enrollment now is critical for fall preparations. Thank you!
Time
February 26 (Monday) - April 21 (Sunday)
Event Details
My Barking Dog is a nightmare comedy
more
Event Details
My Barking Dog is a nightmare comedy that tells the story of Toby and Melinda, two lonely people whose lives are forever changed the night they encounter a starving coyote at their apartment building. Over time they grow to expect him, leaving ritual offerings to entice the coyote every night. Toby and Melinda forge a connection over this visitor and share curiosity and concern about his presence in the city. The coyote expands their world–until, one night, their world is shattered. Their lives are pushed suddenly into uncharted territory, sending them on a surreal odyssey that changes their city–and the world–forever.
Directed by LX Miller. Starring Max Schneider and Denise Hergett
Verge Theater is continuing their mission to provide accessible theater to our community. Tickets for My Barking Dog are Pay What You Wish with a suggested price of $35. Audience members are offered the opportunity to select the price point that is comfortable for them when purchasing tickets.
My Barking Dog runs March 15-17, 22-24, 28-30
Performances on Thursdays, Fridays, and Saturdays begin at 7:00 p.m., with Sunday matinees offered at 3:00 p.m.
Suitable for ages 16 . No animals are harmed in the staging of this production.
Tickets are available online at www.vergetheater.com
Time
15 (Friday) 7:00 pm - 30 (Saturday) 8:30 pm
Location
Verge Theater
Event Details
Saturday, March 23rd 6:00-8:00pm We will combine the heart-opening powers of cacao with the transcendental powers of breathwork and sound. Together, these practices will give us the opportunity for a deep
more
Event Details
Saturday, March 23rd 6:00-8:00pm
Time
March 23 (Saturday) 6:00 pm - April 23 (Tuesday) 8:00 pm
Location
Santosha Wellness Center
169 Snowy Mountain Circle
Event Details
Thursday of the Lord’s Supper Mass St. Joseph Catholic Mission
Event Details
Thursday of the Lord’s Supper Mass
St. Joseph Catholic Mission
Time
(Thursday) 5:00 pm - 6:00 pm