Ask Colin

DOGS OF THE DOW

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  1. What is the original source for the Dogs of the Dow investment method?
  2. I have been testing Dogs of the Dow system on last 5-6 years ASX data. Surprisingly, it works really well...average annual return beating the index by a large margin. Even more surprising is that it doesn't really matter what time of the year starts the testing, I tried March, June, Sept, Dec, it always beat the index... I feel so depressed that it even beats my average return. All it needs is once a year approx. half a year work, always 100% invested no matter if the market is going up or down...I wonder if I add TA into the system to get rid of the real dogs, it may enhance the return?
  3. (Concerning the testing of the "Dogs of the Dow Theory" and its variants), do you think the published value of Div % is reasonably accurate for this analysis or should I be looking for more accurate data? I could obtain this back history from the CRIF lab at NSW Uni, at significant cost, but if the newspaper data is close enough then I can continue on and save the money. I note that most people buying stocks on yield and price would do so straight off this list anyway.
  4. Some time ago you said you thought the various American authors of books on (the various variants of the "Dogs of the Dow" method) had just optimised their back testing to sell books, i.e.. Michael O' Higgins (Dow 5) and the Gardiner Bros. with their Dow 4 and Foolish 4. Are you still of this opinion? If so why?