What, really, is the difference between a dividend-paying stock and a bond? Well, bonds offer the promise (or guarantee) of maturity, and stocks don’t . But both can offer the possibility of an income-stream, plus profits from cap-gains. So, once the put option is factored out of a bond’s price and added to a stock’s risks, the two instruments should offer the same rewards. I don’t like the divvie stock game. But the bond-game is all but dead until the Fed stops screwing around. So I’ve been poking around elsewhere and came across the following, very impressive piece of work.http://seekingalpha.com/article/1185991-yahoo-sector-dogs-sp...
Charlie,That is really bizarre to me. Those charts were of the dogs and what? Most of the charts ended poorly down. I am tired it is somewhat late and I did not carefully read the link. I plan to read it tomorrow. But I looked at the charts and what was up often was coming down. Dave
If I am not mistaken, "dogs of the X" sometimes "works" for years at a time, but always seem to stop "working" once a bunch of people start using it. Does anyone remember the history of the [long] conversation about it that took place somewhere here on the boards about 10 years ago? (when dogs of the dow started failing)
Does anyone remember the history of the [long] conversation about it that took place somewhere here on the boards about 10 years ago? (when dogs of the dow started failing)I sure do. I first came to the Fool in about 1998 because I read about the Dogs strategy. I tried to follow it; sometimes it worked and sometimes it didn't.Then the Fool started tweaking the formula trying to get better and better returns (The final result was The Foolish Four). All they were really doing was desperately curve-fitting the data to get results.In the end (it took a couple of years), they realised that the whole thing was useless.The seeking alpha article refers to a dogs strategy using each of the nine market sectors instead of the Dow index, picking a selection of the highest divvie-payers in each sector, buying them and holding for a fixed period. It's just like the Dogs of the Dow aproach, except way more complicated. And it doesn't work either.Rip who makes his living off the dividends my stocks pay.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |