How to Invest in "Dogs"
Tweet
Share
E-mail
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.
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.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fortitude Gold closes $5.5 million private placement for heap leach expansion
- Chatham Lodging declares quarterly dividends for common and preferred shares
- Monness, Crespi, Hardt keeps Strategy (MSTR) at Neutral, 'continue to remain on the sidelines'
Create E-mail Alert Related Categories
ETFsRelated Entities
Standard & Poor's, DividendSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
