Oxus Com

Main Menu

  • Home
  • Net present value
  • Trustee
  • International monetary system
  • Principal-Agent Theory
  • Banking

Oxus Com

Header Banner

Oxus Com

  • Home
  • Net present value
  • Trustee
  • International monetary system
  • Principal-Agent Theory
  • Banking
Principal-Agent Theory
Home›Principal-Agent Theory›Use this ETF for the “Dogs of the Dow” exhibition

Use this ETF for the “Dogs of the Dow” exhibition

By Terrie Graves
December 29, 2021
0
0


IIt’s that time of year again: it’s time to take a look at the 10 stocks that will be next year’s “Dogs of the Dow” and the exchange-traded funds that can help investors embrace those stocks. without having to pay capital for 10 different shares.

As seasoned dividend investors know, the “dogs of the Dow” theory is easy to understand and to practice. It is based on purchasing the 10 members of the Dow Jones Industrial Average that have the highest dividend yields at the end of the year, based on the fact that these names have the potential to outperform the year ahead. .

An effective way to put this plan in place is to Invesco Dow Jones Industrial Average Dividend ETF (DJD). DJD tracks the Dow Jones Industrial Average Yield Weighted Index, which is the return-weighted equivalent of the standard Dow. Due to the emphasis on dividends, DJD does not own all 30 Dow shares. Cloud computing giant Salesforce.com (NYSE: CRM) doesn’t pay a dividend, so it’s not on the DJD list.

Still, DJD is an effective way to access the dogs of the Dow while covering some risks and boosting income.

“They’re dogs for a reason, but when you have these great companies with incredibly long and stellar track records, they have bumps along the way but can react,” said Kevin Simpson, Founder and Chief Investment Officer of Capital Wealth. Planning, in an interview with CNBC.

Ranked by highest to lowest dividend yield, these are the Dogs of the Dow for 2022: Dow, Inc. (NYSE: DOW), International Business Machines (NYSE: IBM), Verizon (NYSE: VZ), Chevron (NYSE : CVX), Walgreens (NASDAQ: WBA), Merck (NYSE: MRK), Amgen (NASDAQ: AMGN), 3M (NYSE: MMM), Coca-Cola (NYSE: KO) and Intel (NASDAQ: INTC).

When it comes to DJD, investors should remember that dogs are ranked based on their dividend yields at the end of a year. For its part, the Invesco ETF weights holdings according to “their 12-month dividend yield over the previous 12 months,” according to the issuer.

Translation: While Dow is the highest yielding among dogs as it stands, it is simply DJD’s fourth highest holding. Oil giant Chevron (NYSE: CVX), fourth in performance among dogs, is DJD’s largest stake with almost 10% weight.

Even without Salesforce and the focus on performance, DJD is performing mostly in line with the traditional Dow Jones Industrial Average this year, and the Invesco ETF is reporting 140 basis points higher than the standard iteration. of the Dow.

For more news, information and strategies visit Dividend Channel.

Learn more at ETFtrends.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


Related posts:

  1. Why we (usually are not) combating | The day by day weblog
  2. Kind 424B2 UBS AG
  3. IMPLAUSIBLE VICARE LIABILITY ALLEGATIONS: CASE DISMISSED – TCPAWorld
  4. UArizona alum makes Ultimate 4 t-shirts

Categories

  • Banking
  • International monetary system
  • Net present value
  • Principal-Agent Theory
  • Trustee

Recent Posts

  • FMU Trustees Approve $165.5 Million Budget | Latest titles
  • Understanding Pakistan’s Chinese Debt Trap
  • 315 million fewer women than men own a smartphone | information age
  • School trustees should focus on education, not politics
  • Argenti is seeking re-election as trustee of the English Catholic school board

Archives

  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • March 2020
  • Terms And Conditions
  • Privacy Policy