- Jul 17, 2002
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My Investing Strategy:
This guy here explains the premise of the strategy. Key points are:
Consider the Dow30 ("Blue Chips"), invest in the 10 companies with the highest dividend yield (dividing the dividend by the current stock price), meaning they are under performing the rest of these staple american companies, yet still pay a decent dividend. These companies are less prone to recession downside, cover most sectors, and are unlikely to have large fluctuations in revenues. Every year rotate the investment to the next 10 highest dividend yield (basically keep buying low, year after year). 10 Dogs of the Dow
This model is good as it takes the emotion out of investing, all the companies are respectable, less risky, produces good dividends and upside potential.
Now, being canadian, I was hoping to keep most of my money domestic; therefore not everything will go into these american bluechips. I did my own analysis with the same considerations, but with canadian companies.
I took the TSX60 (elite stocks similar to the Dow30) and reseached the dividend yields of all the companies. What resulted was the companies I was considering investing in were considered good values and others that I didn't think of were brought to my attention. These stocks were: The 5 major canadian banks, bce, dofasco, enbridge, domtar, sun life, thompson, transalta, and transcanada. (yield of 2%+) Alcan, bombardier, CN, CP, loblaws, manulife, shaw, teck cominco, telus. (yield of 1%+).
So that's it, companies with good revenues (and profits), able to weather recessions, have good value, and well diversified. What do you guys think?
This guy here explains the premise of the strategy. Key points are:
Consider the Dow30 ("Blue Chips"), invest in the 10 companies with the highest dividend yield (dividing the dividend by the current stock price), meaning they are under performing the rest of these staple american companies, yet still pay a decent dividend. These companies are less prone to recession downside, cover most sectors, and are unlikely to have large fluctuations in revenues. Every year rotate the investment to the next 10 highest dividend yield (basically keep buying low, year after year). 10 Dogs of the Dow
This model is good as it takes the emotion out of investing, all the companies are respectable, less risky, produces good dividends and upside potential.
Now, being canadian, I was hoping to keep most of my money domestic; therefore not everything will go into these american bluechips. I did my own analysis with the same considerations, but with canadian companies.
I took the TSX60 (elite stocks similar to the Dow30) and reseached the dividend yields of all the companies. What resulted was the companies I was considering investing in were considered good values and others that I didn't think of were brought to my attention. These stocks were: The 5 major canadian banks, bce, dofasco, enbridge, domtar, sun life, thompson, transalta, and transcanada. (yield of 2%+) Alcan, bombardier, CN, CP, loblaws, manulife, shaw, teck cominco, telus. (yield of 1%+).
So that's it, companies with good revenues (and profits), able to weather recessions, have good value, and well diversified. What do you guys think?