Hi Louis, > I'm still long T. I bought in on Jan. 2, as part of the 'dow dividend approach', also referred to as the 'foolish four approach' on the Motley Fool website. As luck would have it, International Paper was selling for about $1.00 less than T was at the time, thereby eliminating IP as a selection in the 'foolish four'. As of Friday's close, IP is up nearly 11% and T is down nearly 22%. The other selections in the 'approach' (GM, CHV, MMM) are all up from 4% to 12%.
I also picked up T in my "Dogs of the DOW" portfolio. You are right - this is a "DOG". I swap out on November 15th, but take a different approach than the fools. I look at the highest yelding stock and throw out the highest. Then buy 2/5th's of the next highest yeilding and 1/5th of the others. Right now I am doing between 16 and 20 percent depending on the day. I picked up JPM, XON, TX and T. I did some back-testing and did not find worring about the price of the stock made a large difference, in fact if the stock prices are high they have a tendency to split and get better results.
If "T" keeps on going south I will get rid of it next go around, it will be the one I throw out,:-)
Joan |
