September 27, 2013

This Dogs of the Index strategy

This Dogs of the Index strategy, popularized by Michael B. O'Higgins in the book "Beating The Dow" (HarperCollins, 1991), revealed how high yielding stocks whose prices increased (and whose dividend yields therefore decreased) could be sold off once a year to sweep gains and reinvest the seed money into higher yielding stocks in the same index. Market performance of these thirty selections was then reviewed using six months of historic projected annual dividend history from Yahoo Finance, along with annual divided projections adjusted for market realities..

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