How Are The Dogs Doing?

The original dogs of the dow theory is appealing for various reasons,

• Simplicity. The Dogs of the Dow theory is very simple to follow as you buy the 10 highest dividend yielding stocks from the Dow Jones Industrial Average (DJIA) and hold them for a year.
• The built-in tax advantage. Since you hold these stocks for a year, it translates into lower capital gains tax (currently no more than 15%).
• High dividend yields. By the very definition of the theory you are picking stocks that pay nice dividends and hence continue to reward you through the year even if the price of the stock does not appreciate much.

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