The strategy Dogs of the Dowa long term investment strategywas popularized by American author and money manager Michael B. O’Higgins in 1991. In his 1991 book, Beating the Dow, O’Higgins He detailed it and now it is followed by many with a view to obtaining great profitability and economic benefit.
“Invest $5 every day and use the ‘Dogs of the Dow’ trading strategy. Keep in mind that this method is long-term, but it’s easy to follow and just requires a little discipline on your part”they explain in the article.
As for how the strategy, it is simple. Investing 5 euros a day you would have a total of 1,825 euros per year. This is logically quite far from becoming the million that is announced, but that is what the Dog of the Dow. This strategy of investment has had an average return of 17.7% over the past 45 years.
Dogs of the Dow It’s more than just a fun concept, it’s also a marketing strategy. investment that uses the 10 companies that generate the most dividends in the Dow Jones Industrial Average. He Dow Jonessimply put, is a stock index made up of the 30 companies with the highest market capitalization on the New York Stock Exchange (NYSE).
Strategy aims to outperform DJIA itself investing only in its top 10 companies by dividend yield each year.
For example, in the list of the 10 companies, last year there were some as well known to all as Coca-Cola or IBM. If you dedicate yourself to investing your capital divided by 10 and at the end of the year you review the list again to reinvest the above plus the profits of 17.7% (in an estimated way, since each year varies), you will see how your income will increase exponentially every year.
Constancy as the only trick to carry out this strategy
Since the Dow Jones Often referred to as a barometer for the US stock market in general (because when it rises, world markets are said to be doing well, and vice versa), it’s no surprise that investors have created a strategy that take advantage, since These are some of the largest and most stable companies listed on Wall Street.
To end, the trick is to be consistent every day. In the end, if you are an impatient person, forget about this economic strategy. Most people have 5 euros a day to spend, investing them or not is your decision.