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Dogs of the Dow 2018
I’m a big fan of dogs. And dividends. Both are rewarding in oh-so many ways. And, can provide us with some of life’s finest simple pleasures—- faithful companionship and income.
With that in mind, below are this year’s Dogs of the Dow. Lest you think this investment strategy (basically purchasing the shares of the 10 stocks of the DJIA 30 that pay the highest dividends ), isn’t worth your time, think again.
Yes, it’s true that in 2017, the Dogs’ return of 19% didn’t match or beat that of the 25% return of the DJIA, but 19% is nothing to turn your nose up at no matter what market conditions are.
That said, below are the 2018 Dogs of the Dow, according to DogsoftheDow.com:
| Verizon | 4.5% | |
| IBM | 3.9% | |
| Pfizer | 3.8% | |
| ExxonMobil | 3.7% | |
| Chevron | 3.5% | |
| Merck | 3.4% | |
| Coca-Cola | 3.2% | |
| Cisco Systems | 3% | |
| Procter & Gamble | 3% | |
| General Electric | 2.8% |
FYI: New to the pack of 10 this year are Procter & Gamble and General Electric.
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Market Quick Glance
After a year in which the equity market indices continued to make new highs and new highs and new highs, many investors were smiling all the way to the bank. That said, during the last week of 2017, all four indices followed below lost ground. Not a lot of ground—but all wound up lower than they had at the end of the previous week.
Below are the weekly and 1-year index performance results for four major indices— including the dates each reached new highs—according to CNBC.com based on prices at the close of business on Friday, Jan. 5, 2018.
–DJIA +2.33% YTD
- 1 yr Rtn +27.12% up from last week’s 24.72%
A new high for the DJIA was reached on January 5, 2018 of 25,299.79. Its previous high was reached on December 18, 2017 of 24,876.07.
-S&P 500 +2.60% YTD
- 1 yr Rtn +20.92% up from last week’s 18.87%
A new high for the S&P 500 Index was reached on January 5, 2018 of 2,743.45. The S&P 500 reached its previous new high on December 18, 2017 of 2,694.97.
-NASDAQ +3.38% YTD
- 1yr Rtn +30.04% up from last week’s 27.09%
Nasdaq reached a new high on January 5, 2018 of 7,137.04. Its previous new high of 7,003.89 was reached on December 18, 2017.
-Russell 2000 +1.60%YTD
•1yr Rtn +13.71% up from last week’s +12.64%
The Russell 2000 reached a new all-time high of 1,560.84 on January 4, 2018. Its previous new all-time high was reached on December 4, 2017 of 1,559.61.
-Mutual funds
After a financially rewarding year for many mutual fund shareholders, on Thursday, January 4, 2018, the year-to-date average cumulative total reinvested returns for equity funds that fall under the broad U.S. Diversified Equity Funds heading was 1.64%.
As a point of reference, on the day before the 2017 trading year ended, Thursday, December 28, 2017, the average return was for this fund category was 18.91%. All data figures according to Lipper.
Below are fund types with a weekly performance that screeched out of the box in this new year:
- Equity Leverage Funds, up on average +4.20.
FYI: This group had the BEST average return for fund types that fall under the U.S. Diversified Equity Funds in 2017 of +42.86%.
- Energy MPL Funds, up on average +4.16%.
FYI: This group was the WORST average return for fund types that fall under the Sector Equity Funds heading in 2017 of -5.95%.
- China Region Funds, up on average +3.74%.
FYI: This fund group had the BEST average return for funds that fall under the World Equity Funds heading in 2017 of +43.34%.
Visit www.allaboutfunds.com for more information about how various equity and fixed-income funds have rewarded investors over the short-and long-term, based upon Lipper data. Short-term meaning weekly and monthly performance returns; longer-term includes quarterly, year-to-date, 1-yr, 2-yr, 3-yr and 5-yr returns.
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Investing round the world.
I’m a keeper of lots of paper stuff. Lots. The other day one of the items I ran across was a chart from Thornburg Investment Management. It was a Country Indices chart showing the annual return of 20 different countries from 1995 through 2004.
Given that country investing was rewarding for many investors in 2017—world equity funds, for example, were up over 22% on average—here’s a 20-year look back at what the top three performing countries were in 1997. And then in 1998.
In 1997, the top country performers were: Switzerland, +44.84%; Italy, +36.38%; and US, +34.09.
And in 1998, the top country performers were: Korea, +141.15%, Belgium, +68.73%; and Italy, +53.20%. (The US came in in sixth place that year, up +30.72%.)
Since it’s always been and will continue to be a changing world, and, that history has a way of repeating itself in that ever-changing environment, figured the above might be an interesting read.
Wishing you much investing luck in 2018 wherever you decide to place your bets.
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