Sunday, January 18, 2009
With the market so low and so beaten down it might just be time to "Run with the dogs of the Dow". "Running with the dogs of the Dow" is an investing technique were an investor puts money into 10 stocks (out of the 30 in the Dow Jones industrial) that have the highest paying dividends. The reason for picking the highest paying dividends is they are thought to be the most beaten down stocks of the Dow Jones and thus will have the greatest possibility of comeback. Usually the "Dogs of the Dow"stocks are picked in late December, but with the market so low and with the financial situation the way it is the rule book has to go out the window.
If someone wants a conservative way to make the best out of this bad financial situation, then the "Dogs of the Dow" technique is something to look into. It is important to do the homework on any company though, even Dow Jones companies, before buying stocks. we have to keep this in mind and that there is no guarantee of a return on our investment, as we all probably know, so do your homework before investing. For a list of the 2009 stocks that are at the bottom of there Dow here is a link http://www.dogsofthedow.com/dogs2009.htm