Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
As the Fed was meeting to consider cutting interest rates, it lost control of the very benchmark rate that it manages.Market Insiderread more
Federal Reserve Chairman Jerome Powell said the he does not see the Fed using negative interest rates in the future.The Fedread more
The decision to cut rates followed a monthslong pressure campaign by Trump, who often criticized Chairman Jerome Powell by name as he called for lower interest rates.Politicsread more
President Barack Obama spoke at an event in San Francisco on Wednesday hosted by software company Splunk and addressed how tech can help solve problems.Technologyread more
The FAA administrator's comments come on the eve of his visit to Boeing facilities outside Seattle, Washington. While there, he's scheduled to meet with Boeing executives and...Airlinesread more
Steve Dowling, the head of Apple's public relations department, announced he will be leaving this week.Technologyread more
Tracy Britt Cool is leaving the firm after a decade to start a company that replicates Warren Buffett's business model, the Wall Street Journal reported.Marketsread more
Stocks closed little changed after the Federal Reserve failed to signal it will cut rates again in 2019, disappointing traders.US Marketsread more
A New York-based blockchain consulting firm allegedly extorted a Seattle-based crypto start-up with threats to hijack its initial coin offering, in a case announced Wednesday...Technologyread more
According to a report in the Wall Street Journal, WeWork co-founder Adam Neumann has floated the idea of becoming Israel's prime minister or leader of the world.Technologyread more
Not only is it simple, the "Dogs of the Dow" also has a strong track record.
In fact, this classic value investing strategy — simply calling for buying the 10 stocks with the highest dividend yield in the Dow Jones Industrial Average — has outperformed the markets for the past four years straight and seven out of the last 10 years.
The Dow Jones High Yield Select 10 Total Return Index, which is a proxy for the Dogs of the Dow, has an average annual total return of 9.54 percent going back to 2001, versus 7.29 percent for the S&P 500, according to Bank of America Merrill Lynch. The dogs kept investors relatively safe last year, posting a loss of only 1.5 percent, versus the Dow's nearly 6 percent annual decline and the ′s 6.2 percent.
In 2019, investors could use a safer yet effective strategy that provides steady dividend income. While stocks have bounced back from their worst year since the financial crisis with the S&P 500 up 2 percent so far in the new year, the jury is still out if the market can hold up in the face of the ongoing trade battles and the Federal Reserve's rate-hiking agenda.
International Business Machines, Exxon Mobil and Verizon Communications are among the dogs for 2019. General Electric, which cut its dividend to 0.55 percent from 2.75 percent, is the only stock that got replaced in the new year and it's also no longer in the Dow. J.P. Morgan Chase is a new member of the dogs in 2019.