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 24.3%.
The Aggressive four uses 4 stocks, with each position representing 25% of
your portfolio. The four stocks selected are the four DOW stocks with the
highest yield. If the lowest priced stock on the DOW is also the highest
yielding stock, it is eliminated and the stock ranked #5 is added. The list
below has already been altered to include that exception, if applicable. The
Aggressive Four approach lost value only twice during the above 26 years.
Just under 5% in 1981 followed by a 39% increase in 1982, and an 18% loss in
1990 followed by an 81% increase in 1991.
The following are the Aggressive Four Dow Jones Industrial stocks.
Purchase equal dollar amounts of each of these four stocks. The table below shows you how many shares of each
you buy for every $10,000 invested. Note you are buying equal dollar amounts NOT equal share amounts.
Hold these for 12 months.
Update your portfolio 12 months later.
Overview
