Value Investing News

Dogs of the Dow is a strategy popularized by Michael O’Higgins where the ten highest yielding stocks in the Dow Jones Industrials Average are selected at the end of the each calendar year. Higher Yields typically works as a contrarian indicator as a way to identify bargains where the stock price has gotten low in relation to the dividend. Managements are reluctant to cut dividends, which are a sacred cow in the US, and would do so only if the situation is really bad.

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