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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (30458)	1/21/2019 5:41:28 PM
From: spindr00	Respond to of 34328

Yep, I'm familiar "Dogs Of The Dow". About 20 years or so ago I read "Beating the Dow" by Michael O'Higgins. In brief, the success of the strategy isn't because of the dividend. His mechanical assessment is just a metric to determine the candidates that have the highest yield which in turn means that they are the most downtrodden of the lot and have the highest potential for rebounding and outperforming their other DJIA counterparts and the market. It may sound like a broken record but it's not that high dividend that is causal. It's share price appreciation and the Higgins methodology identifies those that are more likely to achieve the maximum amount of that. I'm not apathetic to dividends. I hold a decent amount of investment grade preferred stocks which pay a consistent dividend. But that's a different game since they are tied to a par value when callable and if they have one, a maturity date. When there is an interest rate cycle (pre 10 years ago), they offer the opportunity to bump up the yield 2-3x via swapping. But that's a different story and is better addressed on the board devoted to it, here. I appreciate the length and effort that you went to, to explain your approach.