Buzzword of the Week: Dogs of the Dow

outsourced cfo northern virginiaThis week, Investopedia’s buzzword talks about an old strategy for making money, buying the Dogs of the Dow each year. This is an investing strategy that consists of buying the 10 DJIA stocks with the highest dividend yield at the beginning of the year. The portfolio should be adjusted at the beginning of each year to include the 10 highest yielding stocks.

The strategy was formulated in 1972 and has proven to be successful. In fact, as Dog of the Dow investors readjust their portfolios each year, it places pressure on the stocks involved.

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