We wanted to update you on the Dogs of Europe. This is a condensed Aristocratic portfolio that is delivering high dividend income and good growth. The portfolio is paying just slightly over 6% and has done well in its short life, but nothing compared to the Dividend Dogs of Canada.
This is a solid income and diversification strategy and design to be an outstanding way for American investors to own high dividend paying European companies. Europe is in many ways having significant COVID-19 related economic stress, and we believe this is possibly a very good alternative when investing outside the United States.
We built the Dividend Dogs of Europe similar to the Dogs of the Dow. The outstanding performance of the Dogs of the Dow, compared to its very close rival Elements Dogs of Dow, confirmed our belief that our approach of quarterly rebalancing, dynamic weighting and no cost trading, is really starting to payoff for our investors– giving our Dogs of the Dow a much higher Year to Date, 1 Year and 3 Year returns then the Elements, even though they both own the same investments.
We believe this superior performance is provided by a better investment style and management. Even though we have a dynamically weighted, concentrated portfolio, over time we have noticed that the companies that have increased the dividend each year often have far less volatility, especially during the COVID-19 pandemic.
At Durig, this “Dogs” long-term strategic approach started with Dogs of the Dow and then Dogs of the S&P, which have demonstrated solid performances over time, and that was even before we added dynamic weighting, quarterly rebalancing and no cost trading. The combination of successful proven decade old investment strategies with today’s more effective approaches, we believe truly provides a superior low cost dynamic modern management portfolio for those seeking to invest in European companies. We have worked hard to make this simplified foreign investment easy with high income and hopefully strong principle growth for Americans to own in a separated account that has superior tax accounting compared to mutual funds.
Dogs of Europe Costs
Annual Cost: 0.50% or 1/8 of a percent per quarter.
Average Dividend Yield of About: 6 %
Minimum Investment: $15,000
Minimum Holding Period: None
The Dividend Dogs of Europe is currently above 6% and higher than many bond funds. With the US 10 Year Treasury yielding only 0.69% this is a good income alternative. Even though the company’s stocks are listed on several European Exchanges, we have almost always been able to buy them as an ADR with no trading cost, giving US citizens a superior tax advantage in owning foreign investments.
We have one of the few profiles that target 3 objectives:
High income – currently over 6%
Growing income – Each company in the portfolio has a history of raising its dividend every year. If they do not raise the dividend this year we will replace them.
Principal appreciation – Aristocratic companies have a history of outperforming.
For people seeking the above objectives, we believe the Dogs of Canada and Dividend Dogs of Europe give clients tremendous diversity compared to most US based portfolios.
The Dividend Dogs of Europe portfolio also has the potential to produce income, growth of income, and principal appreciation over time, while the foreign mid-sized and blue chip dividend stocks held in the portfolio can help to improve your diversification to Europe.
For income and bond investors that wish to increase their income, improve their diversification, and seek higher yields outside of domestic investments, we believe the Dogs of Europe Portfolio is a preferred low-cost portfolio, with a professional and superior approach, and a truly personal support team dedicated to provide one-on-one service.
For More Information
We offer our successful investment strategies of Dividend Aristocrats along with are many Dogs Portfolios to other Charles Schwab Registered Investment Advisors through segregated accounts.