Though the stocks in Durig’s Dogs of the Dow Portfolio more than likely will change from year to year, the underlying screens used to select them remain the same.
Durig searches for and selects a group of of the highest yielding dividend stocks from the Dow Jones Industrial Average (DJIA) which have fallen out of favor (aka the “dogs”) and holds them for one year. Over time, these “dogs” tend to have “more room to run” with respect to their share price.
Time in the market nearly always beats timing the market.
Historically, blue chip dividend stocks have shown themselves to be resilient under downward market pressure, and are thought to offer relative stability in hectic markets as compared to non-dividend paying stocks. Additionally, companies that pay dividends tend to have much stronger fundamentals, such as stable earnings and growth, effective management and stronger financials.
The dividends paid by blue chips can also help to diversify income streams, and because dividends (and earnings) tend to grow over time they typically outpace inflation, preserving the value of your hard earned dollars. These dividends can also help to lessen historical volatility, explained in a recent article:
“During the overall market downturn in 2002, when non dividend-paying stocks fell by an average of 30%, while dividend-paying stocks only declined on average by 10%. Even during the severe 2008 financial crisis that precipitated a sharp fall in stock prices, dividend stocks held up noticeably better than non dividend stocks.”
Less historical volatility equates to a smoother and more comfortable ride for investors.
Durig’s Dogs of the Dow Portfolio can be extremely efficient in a tax advantaged account (such as an IRA) since neither capital gains nor dividends are taxed, allowing your investment to grow tax-free.
Avoid the Crowd
The majority of blue chip investors find themselves in an overly crowded mutual fund structure. While it may seem nice to share gains and losses but in actuality pooled investments are far more muddled, and typically more costly due to high administrative costs, hidden fees, and can create unwanted tax inefficiencies.
Avoid the crowd with a low cost, individually managed Dogs of the Dow account that offers a much cleaner investment environment.
Start building a better retirement today with the Dogs of the Dow.
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Risk Disclaimer: Any content on this review should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades investments to make. Invest with only with risk capital; that is, with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.
Durig Capital is not responsible for any losses incurred as a result of this article Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Disclosure: The primary benchmark* used was SPDR® Dow Jones Industrial Avrg ETF Tr.
A year-end performance review of Durig’s Portfolio Solutions, designed to help you earn income, covering some of the key benefits that each can provide. The following portfolios will be reviewed in this article:
This review explores the performance of the Dogs of the Dow Portfolio, with nearly 4% in dividend income alone, and considers the many merits of blue chip dividend stocks such as those held in the portfolio.
Do you want more income? If your answer is yes, we have excellent news for you! Durig’s FX2 Portfolio has a lifetime track record of historical outperformance of its peer benchmarks while generating extremely high levels of fully customizable income options, something that no mutual fund can offer, all within your own separately managed account.
Informa Investment Solutions (Informa) recently benchmarked the performance of Durig Capital’s FX2 Portfolio Strategy against its peer group of over 200 in short term fixed income on it’s PSN database and found that as of Q4, 2018, Durig’s FX2 was in ranked 1st in Trailing 2, 3, 5, and Since Inception Return Periods.
Morningstar recently ranked the performance of Durig’s FX2 Portfolio Strategy among a peer group of over 200 High Yielding Fixed Income SMA’s and found that it was the #1 performer in trailing 1,3, and 5 year return periods.
Durig Capital’s FX2: Bond Investing with Equity-like Returns
Stocks versus bonds – which is the better investment? This is a highly individual question and depends on the goals of the investor. For most investors, getting the best return with the least amount of risk is a goal worth striving for. But what is the best way to do this? While stocks have generally outperformed bonds, there are exceptions to the rule. Consider Durig Capital’s FX2 Managed Income Portfolio.
This portfolio’s 3-year trailing return has handily beat the S&P 500 index.
Not only has its returns exceeded that of the S&P 500 index, it has done so with roughly half the risk (volatility).
Morningstar claimed that FX2 was the top performing Fixed Income SMA among its peer group in the last significant interest rate spike of 2016.
Additionally, Morningstar has ranked Durig Captial’s FX2 portfolio as the top performing Fixed Income SMA for Trailing 1-year, 3-year, and 5-year returns, as well as for Q1 and Q2 of 2018, amongst a peer group of over 800 SMA’s.
Informa ranked FX2 1st in performance in 1,2,3 and 5 year return categories, as well as since inception, as compared to its peers in Short-Term Fixed Income.