Below we summarize a point about Dogs of the Dow that is necessary for anyone who wishes to employ such a strategy.
- Japan
- Market Indicator
- Price Momentum Indicators
- Richard Russell
- Silver
- Speed Resistance Lines
- U.S. Dividend Watch List
Transaction Alert
On December 11, 2017, we executed the following transactions:
U.S Dividend Watch List: December 8, 2017
Previous Year Performance Review
In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from December 9, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.
| Symbol | Name | 2015 Price | 2016 Price | % change |
| KMB | Kimberly-Clark Corp. | 114.61 | 120.11 | 4.8% |
| MDT | Medtronic | 73.35 | 81.07 | 10.5% |
| CLX | Clorox | 115.29 | 145.23 | 26.0% |
| HRL | Hormel Foods Corp. | 34.39 | 37.24 | 8.3% |
| PPL | PP&L Corporation | 33.51 | 34.50 | 3.0% |
| Average | 10.5% | |||
| DJI | Dow Jones Industrial | 19,756.85 | 24,329.16 | 23.1% |
| SPX | S&P 500 | 2,259.53 | 2,651.50 | 17.3% |
The top five companies gained 10.5% on average. The best performer was Clorox (CLX) which rose 26.0%. Clorox's P/E at the time of our watch list publication was 23, a high multiple for large company. One of theory we have been pondering about is the exceptional return from high P/E stocks that appear on our watch list. More assessment of this thesis is to come.
Although the average gain didn't exceed the market return of 17.3% from S&P500 or the Dow Jones Industrial gain of 23.1%, we consider return of more than 10% to be satisfactory.
The worst performer is a utility holding company,PP&L Corporation (PPL). Interestingly, PP&L is appearing on this week watch list as shares fell from $40 to $34.50. One story our team is discussing has to do with the energy usage pertaining to mining of Bitcoin or other cryptocurrency. Could this be the catalyst that propel utilities companies to higher profitability? It's certainly possible. This article on WIRED highlights important data point in that regard.
U.S Dividend Watch List: December 8, 2017
The relentless bull market marched forward. There's little sign of slowing down but a correction surely is in the future and healthy. The difficulty of seeking viable new investment in this environment is challenging but not impossible. Every now and then, the market give us the opportunity to establish a position. Many of those companies can be found by tracking our watch list for fundamental and track its technical for better timing. Below are companies on our list this week. Continue reading
Posted in Dividend Achiever Watch List, Dividend Achievers, Dividend Watch List
Tagged members
Taxes and the Market
Does the stock market and economy contract with the increase of taxes? The chart below should put such thinking to rest.
Posted in top marginal tax rate
Silver: December 2017
Below is a comparison chart showing the price of silver since 2012 and our view on the direction of the “poor man’s gold.”
Interest Rate Monitor: December 2017
So far, all indications are that interest rates are due to be increased by the Federal Reserve Bank. There will be many explanations for why interest rates should be increased, however, we believe, as demonstrated by over 40 years of evidence, that the Fed follows market rates and gives an economic justification for their decision afterwards.
Performance Review: December 6, 2013
Below is the 4-year total return performance of our Dividend Watch List from December 6, 2013 to December 6, 2017 as compared to the Dow Jones Industrial Average.
Performance Review: December 5, 2014
Below is the 3-year total return performance of our Dividend Watch List from December 5, 2014 to December 5, 2017 as compared to the Dow Jones Industrial Average.
Performance Review: December 4, 2015
Below is the 2-year total return performance of our Dividend Watch List from December 4, 2015 to December 2, 2017 as compared to the Dow Jones Industrial Average.
Posted in Dividend Watch List, NLO analysis
Performance Review: December 3, 2010
Below is the 7-year performance of our Dividend Watch List from December 3, 2010 to December 1, 2017 as compared to the Dow Jones Industrial Average.
Posted in Dividend Watch List, NLO analysis
Performance Review: December 31, 2010
Below is the 7-year performance of our Dividend Watch List from December 31, 2010 to November 29, 2017 as compared to the Dow Jones Industrial Average.
Posted in Dividend Watch List, NLO analysis
Bitcoin Downside Target
“The four most expensive words in the English language are ‘this time is different.” –John Templeton
Transaction Alert
On November 27, 2017, we executed the following transactions:
Transaction Alert
On November 22, 2017, we executed the following transactions: Continue reading
Dogs of the Dow: Part 3
The Dogs of the Dow investment strategy is designed to take advantage of high quality stocks that are undervalued within the Dow Jones Industrial Average. The “dogs” are the ten stocks with the highest dividend yield in descending order. Courtesy of the website Dogs of the Dow, we are presenting the performance of this investment strategy compared to the Dow Jones Industrial Average since 1996:
| year | Dogs of Dow | DJIA |
| 2016 | 16.10% | 13.40% |
| 2015 | -1.20% | -2.20% |
| 2014 | 7.00% | 7.50% |
| 2013 | 30.30% | 26.50% |
| 2012 | 5.70% | 7.30% |
| 2011 | 12.20% | 5.50% |
| 2010 | 15.50% | 11.00% |
| 2009 | 12.90% | 18.80% |
| 2008 | -41.60% | -33.80% |
| 2007 | -1.40% | 6.40% |
| 2006 | 24.80% | 16.30% |
| 2005 | -8.90% | 0.60% |
| 2004 | 0.50% | 3.10% |
| 2003 | 23.60% | 25.30% |
| 2002 | -12.20% | -16.80% |
| 2001 | -7.80% | -7.10% |
| 2000 | 2.70% | -6.20% |
| 1999 | 1.10% | 25.20% |
| 1998 | 7.80% | 16.10% |
| 1997 | 17.30% | 22.60% |
| 1996 | 24.50% | 26.00% |
In prior articles (Part 1 & Part 2), we have proposed that using the same narrow group of stocks and applying various methods can generate far greater returns. However, as investors, our primary consideration isn’t as much about profits as it is about losses. We would rather know, in advance, what to expect when markets are falling rather than when they are rising. Below we have outlined the performance of the Dogs of the Dow (and others) when the Dow Jones Industrial Average has declined in 2000, 2001, 2002, 2008, and 2015.