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Today (and for the next few days only) you have a rare opportunity to vastly increase your income using what might be the simplest investment strategy ever.
And as you’ll see, this strategy works incredibly well over the long term. We know that most people like to think they’re “long-term” investors, but we also know that the average holding period for stocks is less than 6 months.
But if you are a long term investor (or you’d like to be), here are the full details of how you can beat the market…
I call it “The Small Dogs of the Dow.”
The Small Dogs of the Dow is a simple and effective strategy that has outperformed the Dow and the S&P 500 significantly over the last 20 years. Let me present this in simple terms:
“Small Dogs” of the Dow
So what is the “Small Dogs of the Dow?” And how does it work?
First, you must understand the Dogs of the Dow. These are the 10 highest yielding stocks in the Dow Jones Industrial Average. The strategy recommends buying these 10 high yield Dow stocks at the beginning of each year, and rebalancing annually. That’s just one transaction per year…
The “Small Dogs of the Dow” offers a slight twist on this winning investment strategy. And the results require your attention.
One of the key attractions of using the conservative strategy is that it requires very little research or time. Simply take the five lowest-priced Dogs of the Dow stocks and invest an equal sum in each stock.
Every year, the whole process starts over. Oftentimes, most of the stocks will remain on the list from one year to the next, simplifying things from a taxation perspective (no gains or losses to report) and also helping to lower commission costs.
In order of current yields, the 2014 Small Dogs of the Dow are made up of the following stocks:
The Dogs have beaten the performance of the Dow 30 Industrial Average in two of the last three years. But it’s the long term record that has me convinced that this is a winning investment strategy.
Of particular interest to income investors is the fact that the Dogs start every year with a distinct advantage over the rest of the Industrials. This time around it’s a combined yield of nearly 4%. Compare this with a yield of 2.6% for Dow Jones Industrial Average, and the income advantage is clear.
And if you are interested in further increasing your Small Dogs of the Dow performance, please consider taking a look at my High Yield Trader service.
How to Boost Returns Further Without Taking on Any Additional Risk
I have recently taken the Small Dogs of the Dow approach and “super-sized” it using a safe and reliable income strategy known as covered calls.
Back in late April I purchased one of the Dogs of the Dow stalwarts – Intel (Nasdaq: INTC) – in the High Yield Trader portfolio. Eight months later I have almost tripled the 4% dividend by selling calls against the stock. And I fully expect to quadruple the dividend over the next four months.
Just think what the returns on the Dogs of the Dow strategy would be if you added another 8-12% annually and compounded that return over the next 20 years.
These are the types of strategies income investors need to use. Simple, reliable and more importantly, historically proven to outperform the market over the long-term.
Remember, this investment strategy works best when you start now – during this time of year.
Which is why Ian Wyatt is investing $20,000 of his personal portfolio in a similar investment strategy. He’s buying 10 stocks — TODAY — before the market closes.
But these stocks aren’t Dow components… it’s likely you haven’t heard of most of them. Like Dogs of the Dow, these are a unique group of stocks that share one common trait. In this case, it’s a key identifier that tells you when they’re about to take off.
In fact, last year, these stocks averaged DOUBLE the return of the market!
If you’re interested, all you have to do to join Ian, and earn these big gains for yourself is grab shares of these stocks at the exact time he does today. Click here for all the details.