Recently I adopted a new investment strategy for a part of my portfolio, focused on dividend yielding equities. There are a number of common strategies for this - the Dogs of the Dow is probably the most well known.
Here in Canada the equivalent is BTSX - or “Beating the TSX”. It was introduced to me by a family member. He successfully used it over the last 2 decades and wrote about it in many finance publications in Canada. To read more about the method, check out the new blog Dividend Strategy.
Most retail investors – people like you and me – pay fees to financial planners who invest their money in expensive actively managed mutual funds that ultimately underperform the market. The ideal investing strategy is exactly the opposite: simple, low-cost, without error-prone predictions about the future.
Twenty-five years ago a professor named David Stanley published a method of selecting Canadian blue-chip dividend-paying stocks based on a strategy south of the border called “Dogs of the DOW” which had been shown to consistently beat the index.