Some traders argue that once an indicator or strategy is well known it loses its effectiveness. But that doesn't seem to ring true for the Dogs of the Dow, which was popularized in the early '90s.
The Dogs are the 10 highest yielding stocks in the Dow Jones Industrial Average, which is comprised of 30 of the largest -- and arguable safest -- companies in the world.
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The idea is that the higher yields indicate better value, and the chance for above-average returns. And indeed, the strategy does appear to deliver on that. Between 1973 and 1996, the Dogs returned 20.3% annually versus 15.8%for the Dow. In 2013, the Dogs beat the Dow 30 by 8.4 percentage points, returning 35%. (more)
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