Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research or consult with a qualified financial advisor before making investment decisions.
To determine the current "doggishness" of the Dow Jones Industrial Average, we need to identify the stocks with the highest dividend yields. As of January 2023, the Dogs of the Dow are: dogs of the dow current doggishness
However, the presence of the high-risk-free rate changes the math. You are no longer being paid to simply wait; you are being paid modestly to take real risk. Disclaimer: This article is for informational purposes only
Very Doggish 🟡
But what happens when the entire market goes to the dogs? What is the current state of "doggishness," and is the strategy still a pedigree winner or merely a mangy mutt? As of January 2023, the Dogs of the
To determine if the current environment is a "buying opportunity" or a "flea market," we have to measure the qualitative intensity of the doggishness. Let's call this the (scale 1-10, with 10 being maximum despair).
The idea behind the strategy is that these high-yielding stocks are undervalued and will rebound over the course of the year, providing a higher return than the overall market. The strategy is based on the assumption that dividend-paying stocks will outperform non-dividend paying stocks over the long-term.