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Indexed Dogs 

By: Zimbler0 in POPE | Recommend this post (2)
Sun, 18 Mar 12 4:04 AM | 39 view(s)
Boardmark this board | (The) Pope's for real stock market report
Msg. 53888 of 65535
(This msg. is a reply to 53874 by capt_nemo)

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Capt_Nemo > called the Dogs of the Index


Reminds me of a scheme called 'Dogs of the Dow'.
Each year one is supposed to buy the ones with
the highest dividend yield . . . then sell them
the next year and buy the next crop.

Worked pretty good in back testing . . . then a
LOT of folks tried to do the same thing and it
didn't work too well.

Another problem is that, all too often, the 'dogs'
are there - because they ARE DOGS - deserving of
being shot and put out of their misery.

Just my thoughts.

Zim.




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Mad Poet Strikes Again.


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The above is a reply to the following message:
Re: Just now I checked out RIT
By: capt_nemo
in POPE
Sat, 17 Mar 12 8:10 PM
Msg. 53874 of 65535

GM snappy,,,,,,,,,,,,Hey I found this article this morning for ya.

Dividend Dog Tales Of The Russell 1000 In March

A once per year trading system triggered by yield, called the Dogs of the Index can be used to determine the best-of-the-best dividend stocks. The dogs system empowers investors with all the wisdom and knowledge of the well-paid wizards of investment and publishing for free, as those investors select the highest yielding and lowest priced constituents from a collection of equities built by experts.

The charts below for the Russell 1000 Index reveal high yielding stocks whose prices increased (or whose dividends decreased) as candidates to be sold off once each year in order to sweep gains and reinvest the seed money into higher yielding stocks in the same index.

Two key metrics determined the yields to rank the Russell 1000 dog stocks: (1) stock price; and (2) annual dividend. Dividing the annual dividend by the price of the stock declared the percentage yield by which each dog stock was ranked. Thus the investor was able to follow, trade, and await results from an investment in the lowest priced, highest yielding five or ten stocks in the index.

http://seekingalpha.com/article/439701-dividend-dog-tales-of-the-russell-1000-in-march?source=yahoo


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