How to Invest in "Dogs"
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In 1991 an investment theory dubbed "Dogs of the Dow" became popular. The theory states that investors can make money by investing in blue chip stocks with high dividends relative to the stock price. According to the theory, these stocks will outperform similarly priced stocks with lower dividends.
Today a new ETF is launching that is meant to put the theory into practice. The new ETF is ALPS Sector Dividend Dogs (NYSE: SDOG). The ETF applies the ‘Dogs of the Dow Theory' and will invest in the ten Dow Jones Industrial Average stocks whose dividends are the highest fraction of their price.
"ALPS is thrilled to add a high-yield large-cap equity income ETF to our suite of portfolio solutions," said Tom Carter, Executive Vice President of ALPS Holdings. "We believe SDOG offers investors a product with attractive differentiating factors from other large-cap dividend ETFs including higher yield and sector diversification."
The new exchanged-traded fund tracks the S-Network Sector Dividend Dogs Index (SDOGX), a portfolio of 50 stocks derived from the S&P 500.
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Today a new ETF is launching that is meant to put the theory into practice. The new ETF is ALPS Sector Dividend Dogs (NYSE: SDOG). The ETF applies the ‘Dogs of the Dow Theory' and will invest in the ten Dow Jones Industrial Average stocks whose dividends are the highest fraction of their price.
"ALPS is thrilled to add a high-yield large-cap equity income ETF to our suite of portfolio solutions," said Tom Carter, Executive Vice President of ALPS Holdings. "We believe SDOG offers investors a product with attractive differentiating factors from other large-cap dividend ETFs including higher yield and sector diversification."
The new exchanged-traded fund tracks the S-Network Sector Dividend Dogs Index (SDOGX), a portfolio of 50 stocks derived from the S&P 500.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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