Source: Kiplinger Washington Editors
It’s that time of year when Wall Street offers up its many forecasts for the coming 52 weeks, based on anything from earnings growth to interest rates to the possibility of a coming recession – and in 2020, the incessant noise coming from Washington. Investors are glued to their screens waiting for these oft-faulty prognostications. That’s unfortunate, because there’s a better way to plan out your year: the Dogs of the Dow. The Dogs of the Dow is a set-it-and-forget-it plan involving Dow dividend stocks (more on that in a minute). It takes decision-making out of your hands by deferring to the market itself. As long as three concepts are true – the market moves higher in the long run, stocks move into and out of favor, and Dow companies tend to be blue-chip stocks that are intelligently managed and financially stable – the Dogs will do well over time. That third concept might be debatable when you look back on all the companies that have been booted from the Dow. Remember: General Electric (GE) and Sears (SHLD) used to be members.