Tag - Dow Jones Industrial Average

Walking Dogs | Dogs of the Dow Investment Strategy | Sheaff Brock | Bulls of the Dow

Different Takes on “Dogs of the Dow”—Part Two

The long-time appeal of the “Dogs of the Dow” concept, Gordon Scott of investopedia.com postulates, is that “it presents a straightforward formula approach.” Out of the 30 stocks that make up the Dow Jones Industrial Average, investors, at the start of each year, select those ten with the highest dividend yield. Based on the principle that the dividend payout can be used as a measure of the average worth of the company, a high yield is seen as signaling [...]

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, [...]

Sheaff Brock | S&P 500 is a measuring stick of the 500 largest US corporations

Please Welcome to the Stage…the Standard & Poor’s Index!

It’s a measuring stick, a benchmark, a way to discuss our investment markets. But what, exactly, does it DO? The S&P 500 index measures the value of the stock of the country’s 500 largest corporations listed on the New York Stock Exchange or on the Nasdaq Composite. The idea? To provide investors a quick look at the stock market and the economy. And, while many investors first check the Dow Jones Industrial Average, the S&P 500 index is the [...]