Michael B. O'Higgins, an immigrant from Venezuela earned his B.S. in Economics from Siena College in 1970 and entered the investment world in 1971 as a stockbroker trainee for Spencer Trask & Company. He eventually went on to start his own money management firm in early 1978.
Michael is considered one of the top money managers in the United States and has been featured in such magazines as Barron’s, Forbes, Money Magazine, The Wall Street Journal, etc. But what Michael is most known for his best-selling investment classic: Beating The Dow, which later turned into "Dogs of the Dow" investment strategy.
Dogs of the Dow involves buying the ten stocks with the highest yields among the thirty in the Dow Jones Industrial Average at the end of each year then holding them until the end of the next year. Since 2010, the dogs have outperformed the Dow Average in every year but two, and the strategy beats the Dow and S&P 500 indices over 3,5,10, and 20-year average total returns.
Here’s the final list of the Dogs of the Dow, based on a screen run after markets closed on December 31. We’ve rounded the dividend yield to the nearest tenth. One last note on the Dogs: In August, the Dow dropped Exxon Mobil, Pfizer and Raytheon (formerly United Technologies) and added Salesforce, Amgen and Honeywell.
Chevron Corp. (NYSE: CVX): 6.1%
International Business Machines Corp. (NYSE: IBM): 5.2%
Dow Inc. (NYSE: DOW): 5.1%
Walgreens Boots Alliance Inc. (NASDAQ: WBA): 4.7%
Verizon Communications Inc. (NYSE: VZ): 4.3%
3M Co. (NYSE: MMM): 3.4%
Cisco Systems Inc. (NASDAQ: CSCO): 3.2%
Merck & Co. (NYSE: MRK): 3.2%
Amgen Inc. (NASDAQ: AMGN): 3.1%
Coca-Cola Co. (NYSE: KO): 3.0%
I have talked about on a number of occasions that oil has bottomed. And with the US dollar continuing its downward trend, I really like Chevron from the list above as the chart suggests price to continue to move higher to the weekly supply at $110.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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