Top Ten Yield Strategy

[jIM_Ohio]

In fact, going back to Dog's own website, GE is currently in the 9th place, whereas PG doesn't even place at all. In other words, a disciple of Dogs will not hold PG this year, and might not hold GE in the near future. Despite the fact that we agree both are good companies and is extremely unlikely to cut dividends.

Contrast that with the top of the list, Citigroup, which so far has lost about 37% since the beginning of the year, and has already slashed dividend from $0.54 per share to $0.32. Sure, the stock could rebound, but it could also fall further, as it already has earlier in the year. And yet, both Dog and Small Dog would be holding this stock as their #1 pick, despite the fact that it has already underperformed both on the return front as well as the dividend front.

The strategy identified citi as a dog which would be purchased in 2008 (assuming purchases are once per year) and held in 2009.

I agree it could go lower. I also think it might go higher. or it might be flat. 33-33-33 one way or the other

Relative to the other blue chip dow stocks the strategy identified which companies were prices lowest relative to past performance.

The strategy is about identifying good companies at a low price. Citi is a great example.

I also agree the strategy might suggest selling GE and not owning PG. This might mean PG has a had a short term price run up.

My thoughts are to only buy using the dogs strategy... not do an annual sell (rebalance) each year. This way when PG is low I buy it, and when it is high I hold it.

Then when it drops I buy more.

Much of my investment approach is about buying at the right time. I want to sell never- just live off capital gains, interest and dividends once I retire.

[Broken Arrow]

I agree it could go lower. I also think it might go higher. or it might be flat. 33-33-33 one way or the other

Arbitrarily speaking, that's true, but in practice, we don't really know what the percentages are. At least, not without some kind of due diligence (which, again, steps away from Dogs).

The strategy is about identifying good companies at a low price. Citi is a great example.

Well, see now we're back to that same dance again, but if it means anything, I bought Citigroup at one time. Oh yeah, my first stock buy, and the biggest loss I've taken so far. Of course, it also doesn't help that I was and still am an inexperienced stock picker....

For what it's worth, I like your buy-and-hold strategy better. It could work since you're giving your stocks ample time for recovery. But Dogs is buy-and-sell, and it buys into weakness every year without really knowing what it might be getting into.

[maat55]

I found some mutual funds which do same thing with S&P 500 and am considering them- their returns and yield look impressive.

Feel free to provide the ticker symbols.

[jIM_Ohio]

Feel free to provide the ticker symbols.

DVY, PID and VYM are ETFs I have been referred to

SDY, DTD, DLN, and DTN. are others

Mutual funds
Value Index VIVAX
High Dividend YieldVHDYX