Author Topic: Dogs of the Dow vs Index investing  (Read 2494 times)

Bearded Man

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Dogs of the Dow vs Index investing
« on: October 16, 2015, 09:29:45 AM »
Jacob has some really interesting ideas on investing. I like his Dogs of the Dow strategy more and more, as it allows for tax loss harvesting, and is dividend based. http://earlyretirementextreme.com/day-21-investing-for-early-retirement.html

Does anyone do this instead of putting their money into VTSAX or some other index fund? I'm not saying I would do this with all of my money, I'd have rentals, dividend stocks, index funds, a little bit of each (and each alone would cover my living expenses).

Hank Sinatra

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Re: Dogs of the Dow vs Index investing
« Reply #1 on: October 16, 2015, 09:39:48 AM »
I'm not completely sure since I don't follow it closely, but didn't that Dogs of the Dow technique lose it's  mojo back in the 90's? I think it had something to with the  fact stocks, even previous  cash cows, started reducing their dividends. Not giving you an argument here, but I haven't heard the term Dogs of the Dow in over 10 years at least
« Last Edit: October 16, 2015, 10:02:35 AM by Hank Sinatra »

AlanStache

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Re: Dogs of the Dow vs Index investing
« Reply #2 on: October 16, 2015, 09:58:41 AM »
Yeah I had thought DOTD was no longer viable but have not looked at it in many years. 

Dual momentum is a new and (maybe?) good option if you are willing to be more active than buy/hold (with associated risk - buy DM advocates may say there is less risk...), there is a good thread here on it.

http://forum.mrmoneymustache.com/investor-alley/dual-momentum-investing

I have stopped following the thread but was a very educational read.

Jeremy E.

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Re: Dogs of the Dow vs Index investing
« Reply #3 on: October 16, 2015, 10:22:13 AM »
Jacob has some really interesting ideas on investing. I like his Dogs of the Dow strategy more and more, as it allows for tax loss harvesting, and is dividend based. http://earlyretirementextreme.com/day-21-investing-for-early-retirement.html

Does anyone do this instead of putting their money into VTSAX or some other index fund? I'm not saying I would do this with all of my money, I'd have rentals, dividend stocks, index funds, a little bit of each (and each alone would cover my living expenses).
So you're saving up three times the amount you need to retire? That seems a bit extreme to me.