FWIW, O'Shaughnesy Fund "Dogs of the Market" shows his latest (1/99) largest (top 10) holdings in this fund (from highest to tenth):
GM, K, JCI, CTB, AT, MMM, WIN, CAG, MAY, NWL
Based on his historical analysis, this fund picks the 10 highest Dow yielders plus the highest yielders from the S&P Industrial 400 (after excluding any DOW stocks and only from "A" rated and >1B market cap stocks in the 400). O'Shaughnesy believes this fund might beat the S&P 500 without "undue risk"-- it has in the past according to his backtesting. (I do not know how often he rebalances the stocks in the fund.)
Just posting about O'Shaughnesy here to give some possible ideas and maybe get some discussion.
I already own CTB (Cooper Tire)because it fits a dividend model that I like (high relative dividend and mkt. cap. >1B). I also own a little CAG (Conagra), also because of its dividend. I've recently added to my position in JCP (JC Penney), again because of its relative dividend-- so I'm not interested in MAY (May Co).
Unfortunately, in the past few months I talked myself out of K and AT at much lower prices, and I scoffed when people suggested GM over 40 as a value stock -- I was wrong there too. (Now, I'm not interested in these three stocks.) I've passed on MMM also: seems too sluggishly managed, and I can't figure why MMM should sell at such a high pe when I can't see any apparent growth prospects. I'm still looking at NWL.
Anyway, as I say, FWIW.... Paul Senior
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