Dogs of the Dow - Worst performing Dow stocks
Company Name Ticker Recent Price 12Month
% Price Change
GENERAL ELECTRIC CO GE 14.07 -51.815
PROCTER & GAMBLE CO PG 71.98 -16.738
INTL BUSINESS MACHINES IBM 143.22 -9.953
MERCK & CO MRK 57.38 -9.467
DISNEY (WALT) CO DIS 102.48 -7.817
EXXON MOBIL CORP XOM 77.74 -4.777
COCA-COLA CO KO 42.14 -3.481
JOHNSON & JOHNSON JNJ 123.59 -0.290
UNITED TECHNOLOGIES UTX 120.89 -0.091
3M CO MMM 200.26 0.376
These are the worst 10 performing Dow stocks over the past 12 months.
Remember the Dogs of the Dow theory learns from behavioral economics to suggest people over correct when they see stocks doing better or worse then average i.e. they behave differently then an efficient market would dictate. There seems to be some evidence that buying the dogs of the Dow, holding them for 12 months, and then selling them delivers market out performance.
So lets test this out. May as well start with the doggiest dog. Over the next few days I am going to do some research into GE and will probably buy some. I will share my research with you once I have made the purchase.
Warning:
This post does not take into account your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned in this post. Before acting on information in this post, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
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What's your selection criteria for the dogs ? I've heard it done a few ways, PE ratio, price, market cap, time of entry onto the index, etc.
I keep it simple - and judge it on price change.
Makes sense. The popular way for doing our FTSE is to pick the 10 'newest' companies listed on the index each year. I think historically it's something like 8/10 that make profit.
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