Tag - DJIA

Sheaff Brock | Dogs of the Dow Strategy - bulldogs in the office

A Bullish Approach to “Dogs of the Dow”—Part One

Nearly thirty years in use, the term “Dogs of the Dow” is hardly new to investor vocabulary. The concept—out of the 30 stocks that make up the Dow Jones Industrial Average, choose the ten with the highest dividend yield. Dogs of the Dow is based on investors’ intent to “buy low, sell high.” The premise, as Investopedia explains, is that blue chip companies such as those included in the DJIA rarely alter their dividend payouts. The dividend can thus be [...]

Taking the elevator down | option overlay for returns | Sheaff Brock

Option Premiums Can Provide Additive Returns During the Elevator Ride

“Stocks often take the elevator down and the stairs up,” Sheaff Brock Managing Director Dave Gilreath comments, referring to the strong rallies following the stagnant markets in 2004–2005, 2011–2012, and 2015–2016. “The stock market often takes a breather before rallying up to a higher plateau,” Gilreath adds. With the Dow Jones “stuck” for the past year-and-a-half, he observes, it’s not unreasonable to anticipate another “stair-climbing” period. In an earlier First Trust Monday Morning Outlook report, Chief Economist Brian S. Wesbury, [...]