Almost every analyst has an angle on how to beat the market, and investors pay big money for trading tips that promise guaranteed profits. But here on CNBC we give that advice away for free. John Prestbo, editor of Dow Jones Indexes, shared his “Dogs of the Dow” strategy on “Morning Call” today. It returned 32% in 2006.
The Dogs of the Dow are the 10 stocks with the highest yields in the Dow Jones Industrial Average on the last trading day of the year. Prestbo points out that all Dow stocks pay dividends and these 10 with the highest yields tend to have the most depressed prices as a result of neglect or being out of favor.