Dogs of the Dow Stocks Wagging Their Tails

You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Saturday Market Update Today is Jan. 8, 2022 Hey TMI Subscriber, This past week witnessed the sharpest rotation in the market since March of 2021. Investors have been selling high-growth tech stocks, and as of this writing it looks like Friday will mark the fourth consecutive day the Nasdaq 100 has fallen 4.5%. Meanwhile, the Dow 30, an index of income and value blue-chip stocks, ended the week flat. One week of trading does not make or break a market But it’s something you should pay close attention to—especially if you’re holding the high-fliers that investors have been unloading as of late. As we start the new year, if you want to continue holding growth stocks, consider also trying a particular well-known strategy. It’s called the Dogs of the Dow, a popular dividend strategy promoted by Michael B. Higgins in 1991. The way it works is that early in a new year, you identify the 10 highest yielding stocks belonging to the DJIA. Once you’ve identified the 10, you create a portfolio with an equal-dollar amount allocated to each stock. So to create, say, a $100,000 “Dogs of the Dow” portfolio, you’d invest $10,000 into each of the 10 stocks. Then, simply hold the portfolio basket throughout the remainder of the year and rebalance after the ball drops in 2023. You’ll replace any stocks that have fallen out of the top 10 with the ones that replaced them. Your aim is to maintain the portfolio at the start of every year with the top 10 stocks in the Dow that have the highest current yield. The idea behind the strategy is that the highest-yielding stocks have probably lagged behind the others during the most recent phase of the business cycle. We’ve made the exercise easy for you. Presenting the 10 highest-yielding stocks in the Dow-30 as of the end of 2021. What’s really important is that most of these stocks distribute dividend yields that are higher, nearly double, or more, than that of a US 10-Yr Treasury bond (1.62%). If you’d rather have someone do the work for you, consider buying shares in the Invesco Dow Jones Industrial Average Dividend ETF (DJD). As you can see from the below chart, its top 15 holdings nearly mirror that of the Dogs of the Dow so it’s an appropriate replacement. DJD, as expected, rose 2.55% over the past five days. You might consider adding DJD into your portfolio or following the Dogs of the Dow strategy—especially if you’ve fallen in love with growth stocks and need a hedge. Another thing you should consider is attending a very informative and [free webinar on January 12 at 1 p.m. (EST)](. Mr. C will talk about how to use algorithm-based volume analysis to discover positions the biggest players are taking. You don’t have to be a floor trader or work on Wall Street, you can execute these trades from the comfort of your own home. [Click here to reserve your spot.]( Remember, our TMI editors will be monitoring the rotation so stay tuned for more direction next week. In the meantime, enjoy the past week’s articles. This Week in True Market Insider Jan. 3 - Jan. 8, 2022 [Micro-Cap Monday: Here's an Undervalued Gem from an Overpowering Sector — Bill Spencer]( If you've read Bill Spencer’s Micro-Cap Monday regularly since September, you're familiar with the four trading ideas he’s proposed in this hot sector. [Revisit it here](. [Warren Buffett Calls This Market “Manic” and Here's Why — Chris Rowe]( One reason Chris Rowe says you should be mentally prepared for market mania in 2022 is that price-to-earnings (P/E) ratios are historically way overvalued. [Here’s why you shouldn’t be worried](. [Apple's Market Cap Recently Hit $3 Trillion. Does it Really Matter? — Tim Fortier]( Apple has been a consumer favorite for years. And lately, an investor’s favorite too. But Tim Fortier says in the bigger scheme of things, it’s just a distraction to [what’s really going on.]( [Take a ‘Cheaper’ Bite Out of This $3 Trillion Company — Costas Bocelli]( It's not easy to find sales on the most high-ticket items in life, including stocks. But with everyone's favorite "iCompany" making market cap history, Costas Bocelli shares a [sweet strategy]( for doing so with you. [Car Prices Driving You Crazy? Here’s How to Stay Sane — Karen Riccio]( If you're in the market for a new or used car, brace for the worst sticker shock of your life. Prices are going through the roof, and Karen Riccio reveals the [surprising winners]( in all this. Copyright © 2021 True Market Insiders, All rights reserved. Our mailing address is: 7901 4th St. N STE 6113 St. Petersburg, FL 33702 Want to change how you receive these emails? You can [change your preferences here]( DISCLAIMER The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. True Market Insiders LLC is not an investment advisor and is not licensed to give specific financial advice. The chairman of True Market Insiders, Chris Rowe, is also the CEO, CIO and owner of Rowe Wealth Management LLC, which is not owned by and is not the owner of True Market Insiders. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”). However, such information has not been verified by True Market Insiders or the information provider and TMM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. TMM and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made. Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy’s investment objectives, risks, charges and expenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Some performance information presented is the result of back-tested performance. Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the True Market Insiders LLC strategy during a specific period. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon. Back-tested performance results have certain limitations. Such results do not represent the impact of material economic and market factors might have on an investor’s decision making process if the investors were actually managing money. Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. True Market Insiders believes the data used in the testing to be from credible, reliable sources, however; True Market Insiders makes no representation or warranties of any kind as to the accuracy of such data. All available data representing the full platform of investment options is used for testing purposes.