Dogs Of The Dow

These strategies are based on the Dow Jones Industrial Average stocks (The Dow). The Dow is made up of 30 blue chip stocks which are among the most closely followed and widely owned stocks in the world. The Dow stocks, listed below, represent approximately one quarter of the total value of all stocks traded on the New York Stock Exchange.

The Dogs of the Dow are the stocks with the highest dividend yield among the thirty companies that comprise the Dow. These strategies select groups of “out of favor” Dow stocks that are likely to turnaround in the next year. The stocks chosen are the ones with lowest prices relative to the dividend paid, indicating these stocks are “out of favor.”

The High Yield 10

Using The High Yield 10 approach, $10,000 invested in 1970 would be worth over $640,000 by January 1st 1997. This results in an annual return of 17.3%. The High Yield 10 system has been used for the past 26 years. During those years, the approach lost value only twice, the worst of which was a 10% loss during the 1990 recession.

The Preferred Five

This approach combines high yield and low price Dow Jones Industrials with over a 60% better return than the High Yield 10. The same $10,000 invested at the beginning of 1971 by January 1 1997 would have grow to $1,064,600. A compound annual growth rate of 19.67%.

The Aggressive Four

This approach refines the Dogs of the Dow even further. It combines the lower priced high yielding stocks of the Dow 10 with certain restrictions. The same $10,000 invested at the beginning of 1971 would have grown to $1,750, 000 by January 1 1997. That compounds to an annual growth rate of just under 22%.

Conservative Strategies

Winning Investments.com provides three Conservative Strategies. Factors used in the evaluation of these conservative strategies include stability of the stocks price, company size, financial leverage, earnings quality, market penetration, and volatility in the products they market.

Dow Utility Strategy

The Dow Utility Strategy lists the 10 highest yielding stocks of the Dow Utility Index. The approach is similar to the Dogs of the Dow High Yield 10 Strategy except that it uses stocks on the Dow Utility Index. These selections are a Winning Investments.com exclusive.

Utilities For Growth

The Utilities for Growth Strategy is designed as an alternative to bonds. It offers not only high income, but also the opportunity for portfolio growth and capital gains. While income from bonds may be attractive in the short term, long term they may not be a great enough hedge against inflation. In the 12 years ending December 1996, this approach produced a compounded 14.74% return. This strategy is derived from the book How to Retire Rich : Time-Tested Strategies to Beat the Market and Retire in Style, by James O’Shaughnessy.

Value Line Investment Survey ranks stocks on a scale from 1 to 5 regarding safety; with 1 being the safest and 5 being the most risky. Stocks selected for this strategy are all ranked 1 for safety by the Value Line Investment Survey. The 10 stocks with the highest dividend yields coupled to their potential growth are selected. The resulting portfolio is one of high quality stocks that can keep up dividend payments even when times get tough.

"AAA" Core Value

The "AAA" Rated Financial Strength Strategy is ideal for conservative investors. The stocks chosen all have a financial strength rating of A++ (highest rating) by the Value Line Investment Survey. They have the ability to withstand hard times better than almost all other companies traded. In the 12 years ending December 1996, this approach produced a compounded 21.17% return. This strategy is derived from the book How to Retire Rich: Time-Tested Strategies to Beat the Market and Retire in Style, by James O’Shaughnessy.

Only about 40 stocks in total have a Value Line rating of A++. The field of stocks is then narrowed by selecting only those stocks whose dividend yield is greater than the average for the group. From the reduced group, the 10 projected to increase their dividend the most over the nest 3 to 5 years are selected.

Aggressive Strategies

Winning Investsments.com provides three High Growth Stock Strategies. These strategies are designed for aggressive, experienced investors.

Timely Stocks in Timely Industries

This strategy provides you with one stock in each of the top 10 industry groups rated highest for timeliness by Value Line Investment Survey. Industry group rankings are generated by using the average of the timeliness rankings of all the stocks in that industry and comparing each group relative to the other. By diversifying your portfolio and spreading it over 10 industries reduces your risk should one industry fall out of favor. This strategy is exclusive to Winning Investments.com.

High Growth Stocks In Timely Industries

This approach selects stocks that are most likely to be one of the best relative price performers in the next 6 to 12 months. All shares selected in this group are ranked #1 by timeliness by Value Line Investment Survey, and have the highest Earnings Per Share ranking by Investor’s Business Daily. From January 1987 to December 1996 this approach has demonstrated over a 41.8% return using a 5 stock approach and a 31.63% return using a 10 stock approach. This strategy is derived from the book The Unemotional Investor: Simple Systems for Beating the Marketby Robert Sheard.

13/13 Growth Strategy

Stocks selected for this strategy have demonstrated 13% or more growth over the past 10 years, and are expected to continue such growth the next few years. The table below shows the 10 stocks rated highest for timeliness from the group. In this case we list the stocks by timeliness regardless if several stocks from the same industry qualify. So it is a less diversified portfolio with inherent risks. Regardless of the fluctuations in the market, between January 1980 and December 1996 it has generated in excess of 25% growth. This strategy is derived from the book The Unemotional Investor : Simple Systems for Beating the Market by Robert Sheard.

Covered Calls

Winning Investments.com provides six different covered call tables, Stocks Under $25, Stocks Over $25, Potential Stock Split Candidates, 13/13 In The Money, 13/13 Out The Money and Deep In The Money.

Covered Calls Under$25 is a list of our covered call selection based on stocks priced at $25 or less.

Covered Calls Over $25 is a list of our covered call selection based on stocks priced at $25 or more.

Covered Calls On Potential Stock Splits is a list of stocks that have a high probability of announcing a split in the near future. This prediction is based upon various technical indicators including, increase in daily volume, past split history, and price of the stock when it last split. These are very stocks which should provide a good return regardless of whether they split.

13/13 In The Money is a list of covered call selections based on shares that have shown a minimum of 13% annual growth the past 10 years and are expected to grow by at least 13% the next 3 years according to the Value Line Investment Survey. All of the selections in this group are "in the money."

13/13 Out The Money is a list of covered call selections based on shares that have shown a minimum of 13% annual growth the past 10 years and are expected to grow by at least 13% the next 3 years according to the Value Line Investment Survey All of the selections in this group are "out the money."

Deep In The Money is a list of covered call selections have actually been written by a Winning Investments associate. All of the selections have at one time been listed on our other charts. Since many of these selections are written "early" in the month, check the current prices before making a selection.

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